Investing.com — The Dow Jones Industrial Average fell sharply on Friday as Wall Street’s biggest banks started the season with disappointing results, raising concerns about the strength of the upcoming earnings season as inflation fears remain. .
As of 16:00 ET (20:00 GMT), it was down 475 points (1.2%), down 1.5%, and down 1.6%.
Major banks disappointed at settlement stage
JPMorgan Chase & Co. (NYSE:) shares soar as the major bank expects full-year interest income to be lower than expected as the industry prepares for a widely anticipated Federal Reserve rate cut As a result, prices fell by more than 6%.
wells fargo (NYSE:) fell 0.3% despite beating revenue estimates as the lender reported lower-than-expected net interest income numbers.
citygroup Meanwhile, Inc. (NYSE:) fell more than 2% despite reporting quarterly results that beat both revenue and bottom line amid signs that its turnaround efforts are bearing fruit.
The health of the banking sector is often used as a measure of the overall strength of the economy, and the uncertainty surrounding the Fed’s interest rate outlook is likely to impact the entire first-quarter earnings season.
Analysts expect first-quarter earnings to rise 5% year-over-year across S&P 500 companies, but significantly slower than the 10.1% increase in the fourth quarter of 2023, according to LSEG data.
Roku suffer a cyber attack.Zoetis arthritis drug under scrutiny
Elsewhere, Roku (NASDAQ:) stock price rose after the streaming service provider disclosed a second cyberattack on Friday that affected approximately 576,000 accounts, after disclosing unauthorized access to 15,000 user accounts earlier this year. fell 3.3% after the company announced that it had been identified.
Zoetis Co., Ltd. Shares soared nearly 8% after the Wall Street Journal reported that pet owners complained to regulators that the company’s arthritis drugs Librera and Sorrencia caused side effects in their pets. It fell.
Inflation fears remain at the core
Data also showed that inflation expectations rose to 3.1% and 4%, respectively, in April, falling to 77.9 from 79.4 in the previous month, but below the expected 79.0. There are growing concerns about rising long-term interest rates.
About 27% now expect the Fed to cut interest rates in June, significantly lower than 51% the previous week, according to Investing.com.
Oil prices rise due to rising geopolitical risks
Oil prices rose on Friday as geopolitical risks remain high, particularly in the oil-rich Middle East region, but are expected to fall weekly on concerns over U.S. monetary policy.
U.S. officials predicted that Iran would soon attack Israel in retaliation for Israel’s alleged airstrike on Iranian military leaders in Damascus earlier this week.
However, Iran said it would retaliate against Israel in a “coordinated” manner, hinting at the Islamic Republic’s intention to avoid triggering a wider war in tensions in the Middle East.
