Economics
JPMorgan, Citi Slip as Election and Rules Risks Spur Downgrades
- JPMorgan cut at Wolfe Research as risks for banks mount
- Deutsche Bank more cautious; cuts Citigroup, Morgan Stanley
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Bank stocks extended this year’s decline in early Monday trading as several analysts made calls that largely focused on rising risks, including election-year hesitancy and questions about new accounting rules.
The KBW Bank Index fell as much as 1.3% to its lowest since Dec. 12, with all index members save State Street Corp. slipping. Stocks that declined following downgrades on Monday included heavyweights JPMorgan Chase & Co., Citigroup Inc. and Morgan Stanley. The index drop follows a 32% rally in 2019, which strengthened into the close of the year alongside mounting optimism.