Stocks slipped on Friday after a revenue loss from major banks sparked concerns the Federal Reserve would raise interest rates at the next two meetings.
Still, the main index we won that week. The Dow rose 400 points, or 1.2%. The S&P 500 rose 0.8% and the NASDAQ composite rose 0.3%.
JPMorgan Chase on Friday reported first-quarter profits and revenues that crushed expectations boosted by the Fed's interest rate hiking campaign. Citigroup, Wells Fargo and PNC Financial also reported strong results.
CEO Jamie Dimon warned investors during our post-revenue conference call that interest rates need to be prepared for longer than expected.
Wall Street appears to have warned. Analysts increased their bets on a quarter-point rate hike at the Federal Reserve meeting in May and another in June.
Federal Reserve Gov. Christopher Waller said on Friday that central banks need to continue tightening their monetary policy, and that the markets have fallen further.
Austan Ghoolsby, president of the Federal Reserve Bank of Chicago, said the US could fall into a mild recession after the banking riot last month.
Meanwhile, retail sales data has fallen more than expected, suggesting American spending and weakening the US economy.
According to the latest monthly survey from the University of Michigan, there was a fairly stable consumer sentiment in April, despite concerns about the recession remaining.
“There was too much news to digest this morning, but the key point is that there is room for the Fed to do more harm,” said Edward Moya, senior market analyst at Oanda, in a memo.
The Dow slipped 144 points, or 0.4%.
The S&P 500 fell 0.2%.
The Nasdaq composite was sank 0.4%.
Levels can change slightly as the stock settles after trading dates.