by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended in mixed order on Thursday, with only the Nasdaq recording a slight rise, as quarterly results from two major U.S. banks and worse-than-expected inflation data heightened concerns. fears of a recession.
The Dow Jones Industrial Average fell 0.46%, or 142.62 points, to 30,630.17 points.
The broader S&P-500 fell 11.40 points, or 0.30%, to 3,790.38 points.
The Nasdaq Composite advanced for its part by 3.60 points (0.03%) to 11,251.19 points.
All three major Wall Street indexes plunged in early trading on the back of earnings reports from JPMorgan Chase and Morgan Stanley, as both banks reported lower earnings and warned of an impending economic slowdown.
Although they erased some of their losses afterwards, the S&P-500 and the Dow Jones ended in the red for a fourth consecutive day.
“There has been an irrational response to the results from JPMorgan and Morgan Stanley,” commented Jay Hatfield, managing director of InfraCap in New York.
“It’s no surprise that bank investment is weak,” he said. “JPMorgan has warned that there is uncertainty in the market (…) but it is something known”.
Shares of JPMorgan Chase and Morgan Stanley fell 3.5% and 0.4% respectively, dragging the S&P-500 banking index down 2.4% in their wake.
A report from the US Department of Labor released during the day shows that producer prices rose more than expected in June, data echoing the consumer price index, released the day before, which put highlights the surge in inflation.
Investors were somewhat reassured by comments from one of the US Federal Reserve (Fed) governors, Christopher Waller, who said he favored another 75 basis point interest rate hike this month. this amid fears the central bank is taking an even more aggressive stance with a 100 basis point hike.
Eight of the eleven major sectors of the S&P-500 ended down, with financials posting the largest decline (1.9%).
On the stock side, Taiwan Semiconductor Manufacturing rose 2.9% after reporting a very optimistic sales forecast.
* The reminder of the session in Europe: [.EUFR]
* TO BE FOLLOWED ON FRIDAY:
(French version Jean Terzian)