STORY: Shares of JPMorgan Chase slid 5% Thursday morning after America's largest bank reported a 28% fall in quarterly profit and said it had set aside more money to cover potential loan losses in the face of growing fears of a recession.
CEO Jamie Dimon stressed the need to build capital reserves, while flagging a number of concerns including the war in Ukraine, high inflation and the "never-before-seen" quantitative tightening as threats to global economic growth.
The bigger-than-expected decline in profit and a decision to suspend share buybacks hurt the broader market as U.S. stocks plunged after the downbeat results.
Morgan Stanley also reported a drop in second-quarter profit as dealmaking slumped.
The other big banks including Citigroup and Wells Fargo will report results Friday, while Goldman Sachs and Bank of America are set to post earnings next week.