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Wednesday's Bank Stocks: Big banks squeeze gains on a down day

The four largest banks in the U.S. posted gains in trading Feb. 7, as the broader markets slipped despite policymakers' assurances that volatility was not yet at alarming levels.

Shares of JPMorgan Chase & Co. added 0.68% to $112.87, Bank of America Corp. ticked up 0.10% to $31.23, Citigroup Inc. increased 0.21% to $74.98 and Wells Fargo & Co. rose 0.45% to $57.54. The Dow Jones Industrial Average ticked down 0.08% to 24,893.35, the S&P 500 declined 0.50% to 2,681.66 and the Nasdaq Composite Index decreased 0.90% to 7,051.98, which were small losses compared to sharp declines Feb. 5.

Federal Reserve Bank of New York President William Dudley, who is also a member of the policy-setting Federal Open Market Committee, told a conference Feb. 7 that volatility is "not a big story for central bankers" and that "a bump like this has no consequence of the economic outlook." Dudley's comments echoed those of Treasury Secretary Steven Mnuchin, who told reporters Feb. 6 that the Treasury is "very comfortable" with where markets are, adding that he has not seen any liquidity or settlements issues in the system at the moment.

But Dudley said if markets continue to tumble, it may impact his views on monetary policy.

The market rout was triggered by a jobs report that revealed higher wage growth, which could lead the central bank to raise rates faster if inflation ends up rising as the Fed has long predicted.

Other banks made large movements in trading. New York-based Carver Bancorp Inc. added 12.70% to $2.84 while Lafayette, La.-based MidSouth Bancorp Inc. declined 2.30% to $12.75.

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Market prices and index values are current as of the time of publication and are subject to change.