JPMorgan Chase Stock Plunges Despite $20 Billion QIA Partnership

JPMorgan Chase's stock fell 3% on Tuesday despite announcing a $20 billion partnership with Qatar Investment Authority, while Goldman Sachs and Bank of America also saw declines.

The QIA deal is a significant win for JPMorgan Asset Management, which will run tailored global equity portfolios for the sovereign wealth fund. However, the market's response suggests that something larger than the press release is driving the decline in bank stocks.

According to Barron's, Goldman Sachs and JPMorgan Chase were the two largest drags on the Dow Jones Industrial Average this session, contributing 105 and 75 points respectively. The 10-year Treasury yield has climbed to 4.98%, which can pressure expectations for bank net interest margins even as loan rates rise.

The broader market is also affected, with the Financial Select Sector SPDR ETF down 2% and the SPDR Dow Jones Industrial Average ETF Trust off 0.5%. Mary Callahan Erdoes, Chief Executive Officer of JPMorgan Asset and Wealth Management, stated that the firm will leverage its global investment capabilities to support QIA's role as a leader in global institutional investing.