JPMorgan stock (NYSE: JPM) has seen an increase of approximately 11% year-to-date, in comparison to the 1% rise in the S&P 500 index during the same timeframe. In contrast, JPMorgan's competitor Wells Fargo (NYSE: WFC) has risen by 6% over the same duration. So, what has contributed to the strong performance of JPMorgan stock?

The banking giant exceeded Wall Street expectations in the first quarter of FY 2025. Revenue for the quarter climbed 8% to $46.01 billion, driven by stronger asset management and investment banking fees, along with solid trading outcomes. Trading revenue was especially remarkable, increasing 48% to $3.8 billion. Net income rose by 9% to $14.6 billion, or $5.07 a share. The bank's asset management division has also performed well because of heightened asset prices. Assets under management jumped 15% year-over-year to $4.1 trillion. Furthermore, if you're looking for upside with a steadier experience than an individual stock, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception.

That being said, the bank has adopted a cautious stance regarding its outlook due to geopolitical factors, the U.S. imposition of tariffs on trading partners, and worries about inflation. These inflation concerns have led to an increase in treasury yields, with the 10-year yield standing at over 4.40%, up from 4.01% in early April, while the yield on the 30-year bond is just beneath 5%. This situation could have a mixed impact on JPMorgan. Increased rates and market volatility might negatively affect the investment banking sector, as they typically cause delays in IPO listings, mergers, and acquisition activities. However, from a lending perspective, higher yields expand the margin between what banks earn on loans and what they pay on deposits, which generally enhances net interest income and profitability, although there could be some effect on credit quality. Additionally, market volatility could partially be mitigated by the company’s strength in its trading operations.