JPMorgan sees $28 billion in market value erased as Jamie Dimon's emergency heart surgery adds to broader market woes
- JPMorgan shares slipped as much as 7.9% on the one-two punch of CEO Jamie Dimon's emergency heart surgery and continued volatility in risk assets.
- The chief executive, who has helmed the largest bank in the US since 2005, underwent heart surgery on Thursday after experiencing an acute aortic dissection. He is now "awake, alert, and recovering well," the bank said in a memo.
- The Friday decline saw as much as $28 billion erased from the firm's market value.
- All three major US indices tumbled Friday morning as coronavirus fears continued to drive mass sell-offs and a prolonged exodus to safe-haven assets.
- Watch JPMorgan trade live here.
JPMorgan stock tanked as much as 7.9% Friday morning on the double-whammy of CEO Jamie Dimon's emergency heart operation and continued coronavirus volatility.
The chief executive underwent heart surgery on Thursday after experiencing an acute aortic dissection, the bank said in a memo. Dimon is now "awake, alert, and recovering well," JPMorgan added. Senior executives Daniel Pinto and Gordon Smith will helm the bank while the CEO recovers.
The Friday decline slashed as much as $28 billion from JPMorgan's market value.
Dimon is the longest-serving CEO of a major American bank, having taken the role on December 31, 2005. He has since endured the 2008 financial crisis and helped grow JPMorgan to be the largest bank in the US.
Markets resumed their decline on Friday's open, with the S&P 500 diving as much as 3.4%. Equities slumped in the previous trading session as rising coronavirus infections and mixed reactions to central bank stimulus failed to calm investors' nerves.
The S&P 500's Financials sector was the second-biggest loser among the index's 11 subgroups, down about 4% Friday.
The coronavirus has dragged on risk assets since late February, when seven days of heavy sell-offs pushed the S&P 500 and Dow Jones Industrial Average deep into correction territory. The indexes made a modest comeback in the first trading sessions of March but have since erased any month-to-date gains as investors wait out the escalating outbreak with safe-haven assets.
JPMorgan stock traded at $108.53 per share as of 10:15 a.m. ET Friday, down about 21% year-to-date.
The company has 11 "buy" ratings, 15 "hold" ratings, and three "sell" ratings from analysts, with a consensus price target of $139.58, according to Bloomberg data.
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