Dow Slips as JPMorgan Shares Drag the Index

Bank stocks came under pressure after earnings, dragging the Dow lower, even as a softer-than-expected core inflation reading offered some relief to investors.

A weak quarterly performance from JPMorgan Chase weighed on the Dow Jones Industrial Average, while markets reacted positively to signs that underlying inflation pressures remain contained. Headline consumer prices rose 2.7% year over year in December, matching forecasts and November’s pace. Core CPI, which strips out food and energy, held steady instead of rising as economists had expected, sending Treasury yields lower.

The Dow underperformed broader markets, sliding 0.8%, largely due to declines in JPMorgan and Visa. JPMorgan reported a 7% drop in quarterly profit after revenue fell short of expectations, pushing its shares down 4%.

Concerns surrounding the investigation into Federal Reserve Chair Jerome Powell eased, with the U.S. dollar rebounding from the prior session’s losses. Powell and the Fed’s independence drew public support from global central bankers and JPMorgan CEO Jamie Dimon.

Oil prices extended their rally, with U.S. crude futures settling 2.8% higher. President Trump urged continued protests in Iran and announced plans to impose a 25% tariff on countries conducting business with Tehran.

Elsewhere, Japan’s Nikkei 225 climbed to a record high, while the yen and government bonds declined amid growing expectations of a snap election next month.