After a slate earnings Big bank beats fueled fears that Federal Reserve would raise interest rates in its next two meetings.
The major indices have gained this week. The Dow The S&P 500 index rose by 400 points or 1.2%. The S&P 500 Gain 0.8% and The Nasdaq composite advanced by 0.3%.
JPMorgan Chase reported its first-quarter profits on Friday. and Revenue that exceeded expectations due to the Fed interest rate hike campaign. Citigroup, Wells Fargo and PNC Financial has also posted strong results.
Jamie Dimon, CEO of the company, warned investors about its post-IPO plans.earnings Conferencing call that the interest rate will likely be higher longer than anticipated.
Wall Street appears to have noticed. At the Fed meeting in May, analysts raised their stakes on an increase by a quarter of a percentage point. and The next one is in June.
Christopher Waller, the Federal Reserve governor, said on Friday that central banks are not a threat to financial stability. bank Continue to tighten monetary policy and further weigh down the markets.
Austan Goolsbee said, “It’s a good thing.” “definitely” It is quite possible that after last month’s turmoil in banking, the United States could enter into a slight recession.
Retail sales declined by more than anticipated, indicating that Americans have less spending power and The US economy is weakening.
According to University of Michigan’s most recent monthly survey, consumer sentiment remained relatively stable in April despite concerns over a possible recession.
“There was too much news to digest this morning, but the key takeaway is that the Fed has room to do more harm,” Edward Moya, senior market OANDA’s analyst said this in a memo.
You can also find out more about the following: Dow The 124-point drop, or 0.4% is the largest decline since 2007.
The S&P 500 The price of the dollar fell by 0.2%.
The Nasdaq Composite fell 0.4%.
As stocks settle after the trading day, levels might still change slightly.