JPMorgan's fixed-income trading revenue declined unexpectedly in the third quarter, marking the first decline in over two years.

A statement released on Tuesday indicated that fixed-income trading revenue decreased by 4% year-on-year. This resulted in total trading business revenue for the quarter reaching $10.3 billion, which is lower than the $10.5 billion expected by analysts.

In a statement, CEO Jamie Dimon said, "Huge fiscal deficits, stubborn inflation, high asset prices, rising interest rates, and the ongoing geopolitical situation are all still changing quietly. While these factors may be manageable, we remain prepared for a variety of possible outcomes."

JPMorgan Chase, along with Goldman Sachs, Citibank, and Wells Fargo, kicked off the third-quarter financial reporting season for U.S. banks on Tuesday; Bank of America and Morgan Stanley are scheduled to release their results on Wednesday.

As interest rates rise, Wall Street's trading departments are facing the resulting impacts. In September, the Federal Reserve raised its benchmark interest rate to curb inflation, and earlier this month, the yield on 10-year U.S. Treasury bonds approached its highest level in nearly 25 years. Rising yields will depress the value of existing bonds, which may in turn suppress demand for trading services.

As of Monday, JPMorgan Chase' stock price has risen by 3.8% this year.