benchmark index S&P 500 continues to show high punishment from markets and headed to his fifth consecutive losing sessionamid fears that the aggressive measures of the Federal Reserve to control rising prices could push the world’s largest economy into recession. It is pertinent to note that The broader S&P 500 index of banks fell 3.1% to its lowest level since December 2020. In addition, the main sectors of the S&P fell, with energy, materials and added to the financial segment that leads the losses.
After knowing the little encouraging data of the US inflation with 1.3% registered in the last month, all the attention was accumulated in the earnings reports of the most prominent North American banks.
JPMorgan shares fall 3.9% after a reported down 28% on its quarterly profit, higher than expected, and suspended share buybacks to set aside more money to cover possible losses.
Jamie Dimondexecutive president of this bank, pointed out a series of concerns, such as the geopolitical tension, high inflation and “never seen” quantitative tighteningas threats to global economic growth.
Morgan Stanley shares down 0.5% after what the institution missed earnings estimates for the first time in nine quartersas its investment banking unit struggled to cope with the slump in global business.
After last week’s strong jobs report cemented The case for a 75 basis point rate hike in Julyinvestors were shaken by the data of the consumer prices of Wednesday, which prompted traders to bet on a one percentage point rise in interest rates this month.
A Department of Labor report showed on Thursday that US producer prices rose more than expected in June, due to rising energy costs, but core producer inflation appears to have peaked.
Another report showed that the number of Americans who filed new applications for unemployment benefit rose for the second week in a row last week.
Source: Ambito
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