J.P. Morgan Chase & Co. rose 0.6% in midday trading Monday, to outperform its peer group but underperform the broader stock market, after Standard & Poor’s revised up its outlook on the banking giant’s credit rating to “positive” from “stable.” The credit rating agency also affirmed A- long-term rating for the holding company and the A+ long-term rating for the operating company. “The positive outlook and ratings affirmation reflect our view that JPM, the largest U.S. bank by assets, has further added to its leading market shares across its diverse franchise while demonstrating superior resilience to the economic fallout from the COVID-19 pandemic,” S&P said. The ratings agency said it also believes the bank’s creditworthiness has benefited “disproportionately” from secular trends in the banking sector, including business consolidation, technological advancement and regulation. The stock’s gain Monday comes as the SPDR Financial Select Sector ETF edged up 0.4%, while the Dow Jones Industrial Average rallied 164 points, or 0.6%, and the S&P 500 climbed 1.0%. Meanwhile, the yield on the 10-year Treasury note fell 2.4 basis points to 1.608%.
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