JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon has warned of a looming recession as stocks continue to fall.
"You can't talk about the economy without talking about the stuff in the future, and this is serious stuff," Dimon told CNBC on Monday, predicting the U.S. economy will fall into a recession in less than a year.
Rates have already gone up more than most anticipated and they are likely to go higher from here, he explained, citing how the Federal Reserve is expected to ramp up its quantitative tightening efforts and the ongoing war in Ukraine.
"These are very, very serious things, which I think are likely to push the U.S. ... into some kind of recession six to nine months from now," Dimon said.
Markets will remain volatile, showing a lack of new initial public offerings (IPOs) and very few high yields, he said.
"Which is pretty typical, but it's still been orderly. I think it's possible you are going to see it be disorderly sometime in the not-too-near future," Dimon said.
When asked how far the S&P 500 would have to fall to find a bottom, Dimon said, "It may have a ways to go," depending on whether the Fed is able to deliver a soft or hard landing.
"It's hard for me to answer that, but it could be another easy 20%," Dimon said.
The SPDR S&P 500 (NYSE:SPY), an exchange-traded fund that tracks the underlying S&P 500 index, is already down close to 25% since the start of the year. Another 20% decline could push the ETF down to levels not seen since the market rolled over in 2020 on rising COVID-19 concerns.
Related Link: A Congressman Just Sold JPMorgan Stock Ahead Of Earnings - 2 Dividend Stocks He Is Also Trading
JPM Earnings Preview
Several banks are slated to kick off what will be a closely-watched third-quarter earnings season this week. JPMorgan is scheduled to report its quarterly results on Friday.
JPMorgan is expected to report third-quarter earnings of $2.92 per share on quarterly revenue of $32.06 billion, according to Benzinga Pro.
In the third quarter of 2021, the bank beat expectations when it reported earnings of $3.74 per share on quarterly revenue of $30.44 billion. Last quarter, JPMorgan missed estimates when it turned in earnings of $2.76 per share on revenue of $31.63 billion. Analysts had been anticipating earnings of $2.91 per share, one cent below current estimates.
SPY Price Action: The SPY was up 2.41% at $365.17 Thursday afternoon.
Photo: Steve Jurvetson from Flickr.
