4:10pm: Gold retreats from record highs
Wall Street closed lower on Friday lackluster performances from the banking sector as the earnings season kicked off.
At the close, the S&P had lost 1.5% at 5,123 points, the Dow was down 1.2% at 37,983 and the Nasdaq shed 1.6% to close at 16,175.
The downturn exacerbated concerns stemming from a recent spike in consumer prices. Investors are closely monitoring corporate earnings, particularly from major banks, to gauge the potential impact of sustained higher interest rates.
The lackluster start to earnings season dampened hopes of reviving the early-year stock rally. Additionally, while precious metals initially surged, gold retreated from its record high above $2,400 amid ongoing geopolitical tensions and inflation fears, signaling investors' search for alternative safe-haven assets.
12:07pm: All eyes on big bank earnings
At midday, disappointing earnings reports from big banks drove stocks into the red.
Shares of JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) fell 5.3%, Citigroup Inc (NYSE:C) shed 2.8%, BlackRock Inc (NYSE:BLK) was down 1.6%, and Wells Fargo & Co (NYSE:WFC, ETR:NWT) was down 0.2% after handing down their first quarter earnings.
The tech-laden Nasdaq took a 175 point or 1.1% hit, down 16,263 points.
The S&P 500 shed 0.9% at 5,150 points and the Dow Jones was down 0.8% at 38,153 points.
The gold price remained at all-time highs above $2,400 with silver approaching $29 per ounce, while the oil price added about 2.5% on Middle East concerns.
Meanwhile, shares of animal health company Zoetis Inc (NYSE:ZTS, ETR:ZOE) traded down 7.6% after reports suggested its arthritis shots made dogs and cats sick.
9.58am: Markets fall at open as banks dip
The Dow Jones opened 197 points off at 38,261 on Friday morning, as several banks shed value following first-quarter updates earlier on.
Falling 129 points and 28 points respectively, the Nasdaq and S&P 500 followed suit.
JPMorgan Chase & Co faced a 4% fall despite beating estimates with an earnings update before the market opened.
XTB analyst Kathleen Brooks noted the bank’s guidance for US$90 billion in net interest income this year was lower than market expectations of US$90.72 billion.
“JPMorgan is a victim of its own success,” she said, “the market is getting used to seeing blowout earnings and nice upside surprises. Anything less than [...] is a disappointment”.
Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) also took a hit, falling 1.9% on the back of the banking updates, which also featured earnings from Wells Fargo & Co (NYSE:WFC, ETR:NWT) and BlackRock Inc (NYSE:BLK).
7.13am: Markets to open lower
Futures trading had US markets opening lower on Friday, as several big banking names reported on first quarter trading early on.
The Dow Jones was seen opening 115 points down at 38,617, while the Nasdaq and S&P 500 looked to fall 98 and 22 points respectively to 18,386 and 5,221 on the bell.
BlackRock Inc (NYSE:BLK) gained 2.6% in pre-market trading after announcing a 36% increase in first quarter profits and that assets under management had hit a record US$10.5 trillion.
JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) fell 3.5%, alongside Wells Fargo & Co (NYSE:WFC, ETR:NWT) by 2.6%, despite both beating estimates.
JPM said profits climbed 6% to US$13.42 billion, while per share earnings jumped 8% to US$4.44.
Wells Fargo reported a 7% drop in net income to US$4.62 billion increase, while earnings per share fell 2% to US$1.20.
Markets also awaited earnings from Citigroup Inc (NYSE:C), with the shares sitting flat in pre-market trading.