Wall Street closed lower on Friday as mixed economic data pointed to another rate hike by the Federal Reserve, dampening investor enthusiasm for a string of big results from US banks to kick off the season. of reports.
All three major US stock indices ended in the red, but after Thursday’s strong rally, they themselves posted weekly gains.
The Industrial Average Dow Jones lost 150.54 points0.44%, to 33,879.15 units, while the S&P 500 down 8.75 points0.21%, to 4,137.47. The Nasdaq left 42.59 points0.35%, to 12,123.68 units.
“Today we take a breather,” said Sal Bruno, chief investment officer at IndexIQ in New York. “After yesterday’s sharp rise, the market may have gotten a bit ahead of itself.”
JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co all beat analyst estimates for first-quarter profit, benefiting from rising interest rates and easing fears of stress in the banking system.
“Unsurprisingly, the largest banks probably weren’t hit as hard by the regional banking turmoil, and possibly even benefited from it,” said Ross Mayfield, an investment strategy analyst at Baird in Louisville, Kentucky.
The S&P 500 Banks Index rose sharply, with JPMorgan Chase soaring to its biggest one-day percentage gain since November 9, 2020. Citigroup also advanced, while Wells Fargo shares were more subdued.
But mixed economic data, including retail sales, industrial production and consumer confidence, cemented expectations that the Fed will raise rates another 25 basis points at next month’s policy meeting.
