We start off with today's big reversal in JP Morgan shares plunging into the red midday after the company's consumer banking chief told investors that 2026 expenses will rise to $ 105 billion. That's more than 10% higher than this year, more than what analysts were forecasting. Those comments at the Goldman Sachs Financial Services Conference pulling down other bank names like Bank of America, Wells Fargo, and City.Our Leslie Picker is here on set with more on this. It was a big decline for those comments. ...

Market Outlook - The market is currently experiencing upward movement, but there are concerns about whether this trend can be sustained, with expectations of a potential increase of plus or minus 10% over the next year [4] - The Federal Reserve is anticipated to cut interest rates, leading to a steepening of the yield curve, which may result in limited forward momentum in equities [5] AI Investment Narrative - The market's behavior is largely influenced by the AI investment narrative, focusing on the long-term productivity enhancements and potential growth that AI can bring to the economy [2][3] - The real question surrounding AI is how companies will leverage it to reimagine processes and improve productivity, rather than merely supporting AI initiatives [6][7] Economic Implications - There is a potential for a productivity boom driven by AI, which could address issues such as budget deficits and workforce declines through improved labor quality [8] - However, there are concerns about rising youth unemployment, which could mirror historical trends seen during technological advancements [9] Labor Market and Education - The potential for AI to enhance labor quality through better educational outcomes is viewed positively, suggesting that the next generation may be more adept at utilizing advanced tools [10][11] - The current labor market dynamics may lead to challenges, but there is optimism about the capabilities of younger workers entering the job market [11] Bond Market Dynamics - Despite concerns regarding the independence of the Federal Reserve and political chaos, the bond market has not reacted as negatively as expected, indicating a possible overreaction from market participants [13][16] - The budget deficit remains a significant issue, but it appears to be largely overlooked by the market, which may lead to future complications [16]