A) Yes, The S&P500 lost 0.3% to end at 3,790.15, while the Nasdaq gained a meager 0.01% to 11,248.57. The Industry Average The Dow Jones fell 0.5% to 30,628.72.
Losses narrowed as the session progressed. “There was an irrational response to the results of JPMorgan and Morgan Stanley”said Jay Hatfield, chief executive officer and portfolio manager at InfraCap. “It was not a surprise that investment banking was weak.”
JPMorgan CEO, Jamie Dimondstruck a note of caution on the global economy as Morgan Stanley’s investment banking unit struggled to weather a slump in big business.
The actions of JPMorgan Chase and Morgan Stanley fellas is the broader S&P index of banks.
Worries about the slowdown were compounded by a Labor Department report on producer prices, which reinforced fears over Wednesday’s consumer price index data showing higher-than-expected inflation in June.
The decline moderated after Federal Reserve Governor Christopher Waller said he was in favor of a further 75 basis point interest rate hike in July, easing concerns that the hike could reach 100 points. basics.
“The Fed is going to raise rates by 75, but it shouldn’t,” Hatfield said. “The Fed has already done a lot to reduce inflation, but they won’t realize it until they see it in the rearview mirror.”
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 fell 3.5% 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.
Morgan Stanley shares fell 0.4% after 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.
Source: Ambito
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