Several Wall Street banks including JPMorgan Chase are abruptly changing their forecasts for the US stock market.

JPMorgan Chase’s head of global market intelligence Andrew Tyler says the lender’s trading desk is flipping short-term bearish on the stock market amid a deteriorating macroeconomic backdrop, reports Bloomberg.

All in all, the US stock market has wiped out $3.4 trillion this year, giving up all of the gains witnessed since Trump won the election in November.

Tyler’s team sees President Donald Trump’s trade war as a headwind that could limit the US economy’s growth.

“With this in mind, we are changing our view to tactically bearish… Given the uncertainty, positioning, and potential for a negative feedback loop to push people to using the recession playbook, we think the bearish position makes the most sense.” 

Earlier this week, Trump imposed 25% tariffs against both Canada and Mexico, leading to a 500-point drop in the Dow, alongside small drops in the Nasdaq and S&P 500.

As the equity market retreats, Goldman Sachs analyst David Kostin says in an investor note that equity valuations are not yet low enough to trigger a significant bounce. He also believes that the stock market will only regain bullish momentum if the US economy begins to show signs of strength.

“An improvement in the US economic growth outlook will be required to fully reverse the recent equity market weakness.”

On his forecast for stocks this year, Kostin says,

“Equity returns will be more modest than last year and match the trajectory of earnings growth.”

Meanwhile, Morgan Stanley believes that the stock market will see “muted” gains this year. Andrew Slimmon, the firm’s head of applied equity advisors team, says stocks have been in a bull market since 2023, leading to concerns that the market may be overvalued.

Slimmon also says that the third year of an equities bull market typically prints mediocre gains on average based on historical data.

“With enough negatives out there, including higher-for-longer interest rates and geopolitical noise, to cause a subpar year, the recently minted optimists could revert to being skeptics, only to have the market roar again in 2026. In that case, 2025 could be more of a pause year than anything more sinister.”

Last year, all three firms predicted that the S&P 500 would soar to greater heights this year, believing that a Trump presidency would create a favorable macroeconomic environment. JPMorgan, Goldman Sachs and Morgan Stanley predicted that the S&P 500 will reach a new all-time high of 6,500 points in 2025.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The popular payments platform Zelle is preparing to implement a major change to its mobile app services.

The platform says it’s preparing to terminate all transaction capabilities for businesses and consumers on the firm’s standalone mobile app, officially ending all services after March 31st.

The app, which processed approximately $20 billion in transactions in 2024, will still be available for download – but it will only offer educational details about scams and fraud and provide a list of the more than 2,200 banks and credit unions that utilize Zelle.

Customers’ transaction records will also be removed from the app.

The change will particularly affect customers at financial firms like Fidelity, which does not offer Zelle to people with cash management accounts.

Zelle says it’s making the change due to the popularity of Zelle within US banks and financial institutions.

“When Zelle first launched, we also created a standalone Zelle-branded app for consumers whose banks or credit unions had not yet joined the network. With the strong growth of adoption by banks and credit unions, we now see just ~2% of transactions on the standalone app.

As a result of our growth, and because most people are now using Zelle in their financial institution’s mobile app or website, we are making a change to the Zelle standalone app.”

Early Warning Services (EWS), which is owned by seven major US banks including JPMorgan Chase, Bank of America and Wells Fargo, says it’s reaching out “directly and repeatedly” to users of the standalone app to make sure they’re are aware of the pending changes.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

JPMorgan Chase, Wells Fargo and Bank of America say they’ve lost $5.188 billion from customers who have been declared unable to pay their bills.

The banks outlined the Q4 losses in “net charge-offs” statements, revealing loans that the banks have declared as uncollectible and removed from their books after exhausting efforts to recover the owed amounts.

JPMorgan Chase reported the highest charge-offs at $2.4 billion, driven largely by customers with big unpaid balances on their credit cards.

Bank of America recorded $1.5 billion in charge-offs, also primarily from its credit card portfolio.

And Wells Fargo reported $1.288 billion in charge-offs, fueled by higher credit card losses and commercial real estate losses in its office portfolio.

The new numbers come as US credit card debt hits a record $1.21 trillion, according to new numbers from the Federal Reserve Bank of New York.

The collective losses at the three banks represent a $188 million increase over the previous quarter, and a $460 million increase from one year ago.

Despite the losses, the banks reported major earnings in Q4, with JPMorgan Chase declaring $14 billion in profits, Bank of America reporting $6.7 billion and Wells Fargo coming in at $5.1 billion.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney