NEW YORK (CNNMoney) -- JPMorgan Chase's multi-billion dollar trading blunder dragged down bank stocks in premarket trading Friday, setting up a rough session for Wall Street finance firms.
JPMorgan (JPM, Fortune 500) led the bank stock declines, with its stock dropping nearly 7%. The bank revealed Thursday, after the close of markets, that it suffered trading losses of $2 billion since the start of April.
The problems affected other major banking stocks. Morgan Stanley (MS, Fortune 500) fell nearly 3% in premarket trading. Citigroup (C, Fortune 500) was down more than 2% and Bank of America (BAC, Fortune 500) dropped nearly 2%. Wells Fargo (WFC, Fortune 500) slipped 2.5%, and Goldman Sachs (GS, Fortune 500) lost 2.1%.
Bank stocks were already under siege. The KBW (BKX) index of bank stocks has fallen 2.5% over the last five trading sessions, without even showing the impact of JPMorgan's bad trade.
The trade prompted an unusual impromptu teleconference with Chief Executive Jamie Dimon and analysts, at which he divulged that net losses could exceed $800 million by the end of the second quarter for the company's corporate unit. Before that announcement, a net gain of $200 million was forecast for the unit.
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