NEW YORK, Sept. 24 -- The bond market took the lead on Tuesday, and JPMorgan Chase followed it down. A 10-year Treasury yield pushing past 5 percent - the highest since 2007 - overwhelmed a $20 billion partnership announcement from two days prior and sent the bank's shares to a loss of 3.42 percent, closing at $340.51.

The stock ranged between $336.98 and $340.98 through the session. Goldman Sachs, Citigroup, and Bank of America each declined more than 2 percent alongside it - a synchronized derisking move driven by a single arithmetic logic: when the risk-free rate exceeds 5 percent, the implied premium embedded in bank equity valuations becomes harder to justify.

JPMorgan had appeared, briefly, to have structural insulation against th...