The stock market has done an amazing job of moving higher so far in 2023, bouncing back from sizable losses last year. Yet some of that upward momentum seemed to disappear on Friday morning, as stock index futures were down as much as 1% before the beginning of regular trading on Wall Street.

Many investors have wanted to see how earnings season would turn out, especially with fears of an economic slowdown that could show up in the financial results of thousands of individual companies. Bank stocks are typically first out of the gate at the official start of each earnings season, and JPMorgan Chase (JPM 1.14%), Bank of America (BAC 3.56%), and Wells Fargo (WFC 3.22%) all saw their shares decline after releasing their quarterly financial reports. Here's why investors across the markets aren't happy with what these banks said.

JPMorgan stays strong, anticipates mild recession

Shares of JPMorgan Chase fell 2% in premarket trading Friday. The move lower came despite fourth-quarter results that were better than many investors had expected.

JPMorgan's financial metrics were generally strong. Revenue rose 18% year over year to $34.55 billion, and net income managed a 6% rise to $11.01 billion. That resulted in earnings of $3.57 per share.

Several factors drove JPMorgan's performance. Net interest income soared 48%, buoyed by higher interest rates. Solid gains in the consumer and community banking segment offset drops in revenue and sales in the corporate and investment banking division, where weak markets led to sluggish activity levels in initial public offerings and other capital-raising transactions. JPMorgan's asset and wealth management segment saw relatively flat results.

JPMorgan built up its credit reserves in anticipation of what it believes will most likely be a mild recession. Rising charge-off levels in the credit card business are a concern, but CEO Jamie Dimon expressed his confidence that JPMorgan is prepared for whatever comes on the macroeconomic front.

Bank of America celebrates one of its "best years ever"

Shares of Bank of America were down almost 3% in premarket trading. The move came despite what CEO Brian Moynihan referred to as "one of the best years ever for the bank," perhaps because of his further comments that the results came "in an increasingly slowing economic environment."

Bank of America's results reflected that sluggishness in part. Revenue for the fourth quarter was up 11% to $24.5 billion, but net income inched higher to $7.1 billion, producing earnings of $0.85 per share. That capped a year in which the bank earned $3.19 per share, down from $3.57 per share in the year-earlier period.

Net interest income helped boost BofA's consumer banking division, but results were mixed in global wealth and investment management. The global banking segment enjoyed rising revenue but declines in net income, and the global markets segment saw earnings fall as well despite holding up well on the revenue front. Rising provisions for credit losses and charge-offs featured prominently, but credit quality remains solid at this point.

Wells Fargo stock sees the biggest declines

Leading the way lower was Wells Fargo, falling 4% in premarket trading. As anticipated, the consumer-facing bank saw the most pressure on its financial performance in the fourth quarter.

Revenue at Wells fell 6% year over year to $19.66 billion, and net income of $2.86 billion was roughly half what it was in the prior-year period. Key performance metrics like return on equity also got cut in half, as average deposits waned even as loan balances rose.

Most of the pressure on Wells Fargo's financial statements came from losses related to litigation, regulatory, and customer remediation matters. CEO Charlie Scharf pointed to strong credit quality and the bank's efficiency initiatives in driving the bank toward a better future.

Overall, bank comments about the state of the economy are driving worries about the impact on consumers. At this point, consumers seem resilient enough to handle economic pressures, but a sustained recession could stretch their finances beyond the breaking point.