(CercleFinance.com) – The New York Stock Exchange plunged into the red on Friday, the disappointing results of several large banks having added to the concerns raised by the recent revival of inflation.
At the end of the morning, the Dow Jones index lost 0.9% to 38,099.5 points, while the Nasdaq Composite lost 1.3% to 16,225 points.
Over the week as a whole, the Dow has so far lost more than 2%, while the Nasdaq has only shown a symbolic decline of around 0.1%.
The week was dominated by concerns linked to the persistence of inflation in the United States, which could well complicate the task of the Fed in its desire to initiate a cycle of monetary easing.
The University of Michigan confidence index showed a clear deterioration in household morale in April due to an increase in their inflation expectations.
Their estimate of the 12-month price increase stands at 3.1%, compared to 2.9% in March, a level once again higher than the range of 2.3% to 3% which prevailed before the epidemic. Covid.
Equally worrying, the managing director of JPMorgan, Jamie Dimon, expressed concern on Friday about the existence of a large number of persistent inflationary tensions, and ‘which could well continue’ according to him.
While the new results season raised a lot of hopes, the mixed performances revealed by several financial groups dampened investors’ enthusiasm this morning.
JPMorgan Chase, the largest American bank in terms of assets, fell by more than 5% after reporting net earnings per share (EPS) significantly higher than expectations.
Citigroup lost more than 2%, despite quarterly accounts much better than expected, which came as the New York group completed a major restructuring plan last month.
Wells Fargo, for its part, managed to limit the damage (-0.1%) despite the announcement of a more marked drop than expected in its quarterly profit.
Fears about inflation are favoring the rise in bond yields, with that of ten-year US Treasury bonds rising beyond the symbolic bar of 4.50% after having reached a new five-month peak at 4.53%. .
Gold, the ultimate safe haven, is taking full advantage of Wall Street’s bout of weakness and reaching new historic highs, not far from 2450 points. Its increase over the last three months has now reached 17%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.