Concerns Over Slow Economic Recovery Causes JPMorgan and Bank of America Stocks To Slip
The shares of Bank of America and JPMorgan Chase dipped earlier today following concerns amongst investors about the slow pace of economic recovery in the United States. The rapid increase in weekly jobless claims earlier today led to further concerns in the market.
JPM and BAC Shares Are Down
JPMorgan Chase and Bank of America are some of the losers today. During Tuesday’s pre-trading session, the shares of JPMorgan Chase slipped 2.6%, while Bank of America dropped 2.9%. The decline is a result of investors’ concerns about the current state of the economy.
Market participants are concerned that the pace of recovery of the US economy is slow, even though it is higher than what is experienced in Europe. The shares of JPMorgan and Bank of America suffered because banks and other financial institutions are viewed as cyclical stocks, with their performance tied to that of the broader economy.
At the time of writing, JPMorgan’s stock has slightly recovered and is down by less than 1% against the US Dollar. JPM is currently trading at $152.19 per share. The Bank of America stock (BAC) is also recovering and is only down by 1.5%. BAC is trading above the $39 mark.
Investors Concerned By Slow Economic Recovery
The decline in the stock prices of the bank stocks is due to the general concerns around the United States economy. The US Weekly Jobless Claims rose to 373,000 according to the data published today. The increase in this data signifies that the economy is not recovering as expected despite President Biden moving swiftly with vaccine delivery in a bid to completely reopen the economy.
Yesterday, the PMI figures were also weak, indicating that the purchasing power of the citizens is not back to the optimal position.