Stocks opened Friday in negative territory and remained there until the close, putting a dire cap on a week of declines for the major indexes. The day’s decline was due to disappointing forecasts from several major banks, although geopolitical risks increased selling pressure.
Ahead of the start of trading, some of the country’s largest financial institutions have begun their first quarter earnings season.front and center JP Morgan Chase (JPM) disclosed first-quarter earnings of $4.44 per share on revenue of $42.6 billion, both numbers exceeding analyst expectations.
but blue chip stocks The stock plunged 6.5% following disappointing forecasts, losing $36 billion in market capitalization along the way. Specifically, JPM says that net interest income (NII), a key profitability metric for banks, measures the difference between the income earned from interest-bearing accounts such as loans and the cost paid for those assets, and is expected to grow by 2024. He said he expected the fiscal year to remain unchanged at $90 billion. From the previous prediction.
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Nevertheless, CFRA investigation Analyst Kenneth Leung maintained a “buy” rating. dow jones stocks.Leong said NII’s guidance is conservative and “in line with the current [interest] Interest rates and a healthy US economy [to] Supports loan amount growth and impact on net interest income. ”
both citygroup (C, -1.7%) and wells fargo (WFC, -0.4%) also reported significant improvement in first-quarter sales and bottom line profits. financial stocks We closed down today.
Intel, AMD slide in China news
In non-profit news, semiconductor stocks intel (INTC, -5.2%) and Advanced Micro Devices (AMD, -4.2%) Both later fell. wall street journal China said it has given the country’s biggest carriers until 2027 to begin phasing out core processors made by foreign companies.
CFRA Research analyst Angelo Gino maintained a positive outlook on the semiconductor industry following the unconfirmed WSJ report. “This shouldn’t be a surprise to anyone, and we expect to see more headlines about China’s de-emphasis on US-designed chips across all industries,” Gino said in a note.
Oil prices rise due to rising geopolitical risks
However, it wasn’t just the negative reaction to business results or the slump in semiconductor stocks that weighed on the stock market today. media coverage Suggestions that Iran is preparing a direct attack on Israel at some point in the coming days amplified the selling across stock markets.
surely, Dow Jones Industrial Average The number of cases decreased by 1.2% to 37,983. S&P500 The number of cases decreased by 1.5% to 5,123 cases. Nasdaq Composite The number of cases decreased by 1.6% to 16,175. All three companies ended the week lower.
Rising geopolitical risks led to stocks selling, while crude oil futures fell 0.8% to settle at $85.66 a barrel after hitting a six-month high in intraday trading.
