Trump’s Threatened Lawsuit Against JPMorgan and Attack on WSJ Add Political Risk for Big Banks and Media Stocks

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“A front page Article in The Fake News Wall Street Journal states, without any verification, that I offered Jamie Dimon, of JPMorgan Chase, the job of Fed Chairman. This statement is totally untrue, there was never such an offer and, in fact, I’ll be suing JPMorgan Chase over the next two weeks for incorrectly and inappropriately DEBANKING me after the January 6th Protest, a protest that turned out to be correct for those doing the protesting — The Election was RIGGED! Why wouldn’t The Wall Street Journal call me to ask whether or not such an offer was made? I would have very quickly told them, “NO,” and that would have been the end of the story. Also, one was led to believe that I offered Jamie Dimon the job of Secretary of the Treasury, but that would have been one that he would be very interested in. The problem is, I have Scott Bessent doing a fantastic job, A SUPERSTAR — Why would I give it to Jamie? No such offer was made there, or even thought of, either. The Wall Street Journal ought to do better “fact checking,” or its already strained credibility will continue to DIVE. Thank you for your attention to this matter!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s threat to sue JPMorgan Chase over alleged “debanking” could create headline risk and short-term volatility for JPMorgan (JPM) relative to peers like Bank of America (BAC), although the market may ultimately discount the legal threat if investors see limited financial or regulatory impact. The attack on The Wall Street Journal, owned by News Corp (NWSA), may weigh modestly on sentiment toward the publisher and, by extension, on media names within the Communication Services Select Sector SPDR Fund (XLC), given renewed political scrutiny of perceived “fake news.” Broader financials, as represented by the Financial Select Sector SPDR Fund (XLF), could see minor sentiment spillover from political pressure on large banks and the Fed, but any sustained move would likely depend on whether this rhetoric translates into concrete policy or legal developments.

Here are some of the stocks that might be affected:
Bank of America ((BAC)),
JPMorgan Chase & Co. ((JPM)),
News Corporation Class A ((NWSA)),
Financial Select Sector SPDR Fund ((XLF)),
Communication Services Select Sector SPDR Fund ((XLC)).