U.S. stocks fell on Friday as big U.S. banks' results disappointed, concluding a week of market-moving inflation data, changing Federal Reserve policy expectations, and geopolitical worries.
All three major indexes lost more than 1% this week. S&P 500 index (.SPX) posted its largest weekly percentage loss since January, while Dow Jones Industrial Average (.DJI) posted its sharpest weekly fall since March 2023.
JPMorgan Chase & Co. (JPM.N), the largest U.S. bank by assets, reported a 6% profit gain but missed its net interest income target. Its shares fell 6.5%. After net interest revenue declined 7% due to weak borrowing demand, Wells Fargo & Co. (WFC.N) stock dipped.
This week's hotter-than-expected Consumer Price Index report suggests inflation may be stickier than predicted, prompting investors to rethink the timing and scope of the U.S. Federal Reserve's rate cuts this year.
"It's a very real risk that we won't get any rate cuts this year," Dickson said, adding that the Fed would likely prefer to maintain rates higher for longer. The NYSE trading floor in New York City employs traders.
"Geopolitical risks may raise energy prices, negatively impacting the CPI situation." The Dow Jones Industrial Average (.DJI) lost 475.84 points, or 1.24%, to 37,983.24. The S&P 500 (.SPX) fell 75.65 points, or 1.46%, to 5,123.41, and the Nasdaq Composite (.IXIC) down 267.10 points, or 1.62%, to 16,175.09.
After a report that Chinese officials urged the country's top telecom operator earlier this year to phase out foreign processors by 2027, AMD and Intel slumped 4.2% and 5.2%, respectively. U.S. Steel (X.N) fell 2.1% after shareholders approved a combination with Nippon Steel Corporation (5401.T).
The S&P 500 had 12 52-week highs and nine lows, while the Nasdaq Composite had 35 and 211. U.S. exchanges traded 11.67 billion shares, compared to 11.41 billion for the full session during the past 20 trading days.
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