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Wall Street stocks opened lower Friday as shares of major banks slid amid recession concerns. online news
This came on the back of the banks reporting their earnings results, with JPMorgan Chase posting higher fourth quarter profits but setting aside more funds in case of a recession.
While the US economy remains strong with consumer spending and the labor market resilient despite efforts to cool demand, JP Morgan Chase Chief Executive Jamie Dimon pointed to uncertainties ahead.
Around 15 minutes into trading, the Dow Jones Industrial Average lost 0.5 percent to 34,016.34.
The tech-heavy Nasdaq Composite Index shed 0.8 percent to 10,908.78, while the broad-based S&P 500 declined a similar margin to 3,950.82.
Bank of America also said it increased reserves to deal with a deterioration in the macroeconomic outlook.
Its shares slipped 0.5 percent on Friday morning, while JPMorgan Chase shares slumped 1.2 percent.
“The market this morning looks to be succumbing to general profit-taking interest, which has been hastened by some less-than-stellar earnings reports from the banks,” said Patrick O’Hare of Briefing.com.
Delta Air Lines, which also reported its results, plunged 6.4 percent.
While the air carrier saw better results than expected in the final months of 2022, it warned that labor costs would weigh on first quarter profits this year.
Other notable movements included carmarker Tesla, which saw shares fall by 5.6 percent after indications it cut prices in the US and Europe.
bys/bgs
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