JPMorgan Chase led the bank's stock price rebound on Friday, rising 7.3% despite a closing loss on the same day. This increase is the strongest daily return of this large bank since May 2022, making its stock price stable at the top of the S&P 500 index on that day. Competitors Goldman Sachs, Morgan Stanley, and Bank of America also joined the rebound, rising by 1.5%, 1.5%, and 3.5% respectively.

Friday is the first day of the earnings season, with JPMorgan Chase, Wells Fargo, Citigroup, and PNC kicking off before the market opens. JPMorgan Chase announced record breaking quarterly revenue, with Citigroup exceeding revenue and profit expectations, and the bank attributed its strong performance to higher interest rates. Wells Fargo Bank and PNC were both flat, with the former reserving more funds for potential non-performing loans, while the latter clearly exceeded profit expectations. However, after recent regional bank failures, investors still avoided.

More broadly, the KBW Bank Index enjoyed its best daily gain in three weeks. However, the KBW Regional Banking Index, which measures the performance of small regional banks, fell 2.9% on the same day. The index has fallen 22% since the beginning of the year as it continues to suffer from the aftermath of recent bank failures, which has led investors to be cautious towards smaller banks.

The rebound began at the beginning of the Wall Street Open, with JPMorgan reporting an unexpected surge in deposits and increasing guidance on net interest income for the rest of the year. Citigroup and Wells Fargo Bank also released earnings before the opening of trading on Friday, both reporting healthy growth in net interest income. Obviously, large banks are benefiting from the Fed's aggressive rate hikes.