Stocks plunged Thursday as big bank earnings showed disappointing results and as traders assessed the possibility of even tighter U.S. monetary policy from the Federal Reserve as recessionary fears lingered.
The Dow Jones Industrial Average fell 0.46%, or 142.62 points, to 30,630.17, while the S&P 500 shed 0.3% to 3,790.38. The Nasdaq Composite surged 0.03% higher to finish at 11,251.19.
Stocks closed in negative territory but well off their lows. At one point, the Dow dipped as much as 628 points while the Nasdaq and S&P 500 plummeted more than 2% each. Equities were on track to close out the week in negative territory.
“If the banks are a barometer of the whole economy as well as what we’re likely to get from other earnings reports going forward, it’s going to be an ugly quarter,” said Sam Stovall, chief investment strategist at CFRA.
Earnings results from major banks on Thursday offered further clues into the health of the U.S. economy fears of a recession loom.
JPMorgan Chase shares fell 3.5% after the bank added to reserves for bad loans and halted its share buybacks. As profits decreased, CEO Jamie Dimon warned that the economy could take a hit from surging inflation, geopolitical tensions and dwindling consumer confidence “sometime down the road.”