Wall Street's main stock indexes sank Friday as some big banks reported disappointing quarterly results and most megacap growth firms and chipmakers fell.
JPMorgan Chase & Co(JPM.N), fell 4.8% as its interest income projection fell below analysts' expectations. Wells Fargo(WFC.N), down 0.1% after posting a more than 7% drop in first-quarter profit due to decreased client interest payments. Citigroup opened new tab dropped 0.5% as first-quarter profit decreased.
"Most indicators are that the growth has been fairly persistent in the last couple of quarters," said HighTower Advisors managing director Hugh Anderson.
"I would expect that the banks are going to show some decent earnings, but they also might show some cracks in the other parts of the reports, such as delinquencies, defaults and the like, because there is some evidence of that in the market."
The S&P 500 banking index (.SPXBK) plummeted 2.4% to its lowest level in over a month. Indexes fell 1.1% to 1.4% as megacap growth companies Nvidia (NVDA.O), Tesla (TSLA.O), and Meta Platforms (META.O) fell.
AMD (AMD.O) and Intel (INTC.O) fell over 3.5% after a report that Chinese officials instructed the top telecom provider to eliminate foreign processors essential to their networks by 2027.
The Dow (.DJI) and S&P 500 (.SPX) lost weekly as traders were wary of the U.S. central bank decreasing interest rates after a hotter-than-expected inflation reading. However, the tech-heavy Nasdaq (.IXIC) was poised for its first weekly rise in three.
The Dow Jones Industrial Average (.DJI) was down 241.86 points, or 0.63%, at 38,217.22, the S&P 500 (.SPX) was down 36.13 points, or 0.69%, at 5,162.93, and the Nasdaq Composite (.IXIC) was down 136.66 points, or 0.83%, at 16,305.54 at 10:04 a.m. ET.
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