on this wheel, the Nasdaq Composite had the biggest price correction as it lost 260.82 points, or 2.2%, to 11,374.48 units; then followed but to a lesser extent the S&P 500 lost 44.59 points, or 1.1%, to 3,854.79 points Y The Dow Jones Industrial Average fell 162.85 points, or 0.6%, to 31,165.57 points.
Let us remember that last week, the New York stock market had closed with gains, led by the Nasdaq which gained 2.8%, while the Dow Jones and the S&P500 added 2%.
The Nasdaq technology indicator is heading to break its winning streak in the first days of the month, as a result of the pronounced write-offs of Apple Inc, Microsoft Corp and Amazon.com Inc in trading before noon in New York.
Big banks including JPMorgan Chase & Co, Citigroup Inc and Morgan Stanley are due to release their results this week, which will be scrutinized for signs of slowing economic growth. Analysts expect profits to fall sharply year-on-year as companies increase their loan-loss reserves, fueling fears of an impending recession.
Second-quarter profits at large US banks are expected to fall sharply from a year earlier on rising loan loss reserves as the recovery from the pandemic gives way to a possible recession. Analysts expect that JPMorgan Chase; will report a 25.0% drop in earnings on Thursday, while Citigroup Inc and Wells Fargo; will show earnings declines of 38.0% and 42.0%, respectively, on Friday, according to Refinitiv data.
This context encourages rumors of a interest rate increase of 75 basis points at the end of Julythough concerns about the pace of future hikes have increased after a stronger-than-expected jobs report on Friday.
That report, which signaled a still-strong labor market, helped ease some fears of an immediate recession but raised concerns about more aggressive Fed policy tightening to curb runaway inflation.
“People are not only concerned that profits will weaken due to an economic slowdown, but also because of the rising dollar, which creates a drag on profits for multinationals”said Robert Pavlik, senior portfolio manager at Dakota Wealth Administration.
On Wall Street it resonated loudly Twitter Inc stock crash that plunged after Tesla Chief Executive Elon Musk said on Friday he was ending his deal to buy the social media company.
The spotlight will also turn this week to US consumer price data to gauge the state of inflation and how aggressively the Fed might respond.
Source: Ambito
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