NEW YORK – Stocks dropped right out of the gate following JPMorgan & Chase Co.’s stunning disclosure that the bank lost $2 billion in “egregious” trading losses.
The Dow Jones industrial average was down 25 points, or 0.2%, to 12,830 shortly after the opening bell.
The broader Standard & Poor’s 500 index was down 4 points, or 0.3%, to 1,355.
The benchmark index for U.S. equity markets was dragged down by financial stocks, which were down 1.8%. Bank stocks were down 3.3%.
JPMorgan’s stock lost $3.76, plunging 9%, to $36.98 a share. After U.S. stock markets closed on Thursday, the investment bank disclosed a whopping $2-billion loss because of risky trades with the bank’s money that backfired. JPMorgan said the bank could lose as much as $1 billion more from its Chief Investment Office.
Bank of America Corp.’s stock was down 15 cents, or 2%, to $7.55 a share.
Some banks avoided the early selloff. Wells Fargo & Co. was up 33 cents, or 1%, to $33.55.
The technology-focused Nasdaq index was initially down slightly but then was up 6 points, or 0.2%, to 2,940.