State Street shares drop as BlackRock moves $1tn to JP Morgan
State Street's shares took a 4% hit following BlackRock's announcement it was moving $1tn from the bank to JP Morgan. In response, the latter's shares rose 1%. A State Street spokeswoman said the move would not be completed until 2018, and the company would remain a "significant service provider" for BlackRock. State Street recently reported Q4 sales of $2.53bn, a 0.31% drop from the previous year.

Shares of State Street fell more than 4 percent following reports that asset manager BlackRock was taking $1 trillion out of the bank's custody and putting it in the care of JPMorgan .

BlackRock confirmed the news early Wednesday. Shares of JPMorgan rose 1 percent as the broader market rallied and the Dow Jones industrial average topped the 20,000 milestone for the first time.

A State Street spokeswoman told CNBC that the firm will still retain custody over some of BlackRock's assets.

"We remain a significant service provider for BlackRock, and the transition will not be fully completed until 2018," she said. "As I'm sure you've seen from our earnings announcement, we continue to see strong client demand for our services with new asset servicing wins of approximately $1.4 trillion for 2016."