Following a series of policy announcements by U.S. President Trump, JPMorgan Chase (JPM, Financial) achieved record trading revenue in the first quarter. The bank's equity market income surged by 48% to $3.81 billion, surpassing analyst expectations and setting a new record for the company. Despite this success, CEO Jamie Dimon expressed caution about the U.S. economic outlook.
Dimon highlighted significant economic disruptions, including geopolitical factors, potential positive impacts from tax reforms and deregulation, and negative influences like tariffs, trade wars, persistent inflation, high fiscal deficits, elevated asset prices, and market volatility.
JPMorgan's loan loss provisions increased by $973 million, exceeding analysts' estimates of $290 million. This higher-than-expected provision indicates that U.S. companies are preparing for economic downturns, as executives navigate Trump's evolving tariff policies.
As of Thursday's close, JPMorgan's stock had fallen 5.3% year-to-date, but it rose 3.9% in pre-market trading on Friday in New York.
