Stocks stumbled on Friday as techs lost their winning ways, with investors looking for inspiration in the big bank results rolling in to kick off earnings season.
The tech-heavy Nasdaq Composite () slid 0.9%, while the S&P 500 () shed 0.7%. The Dow Jones Industrial Average () fell 0.6%, or more than 200 points.
Stocks are falling after “Magnificent 7” tech names led a run higher on Thursday, propelled again by AI tailwinds. Investors also took comfort from a lower-than-expected gain in wholesale inflation after getting spooked by a surprisingly hot consumer price print.
BlackRock (BLK) results got earnings season underway early Friday amid hopes that corporate updates can revive the early-year rally in stocks. Shares of the world’s biggest asset manager popped in morning trading after the company posted a 36% jump in profit.
Investors are watching for the giant banks to demonstrate how they benefit if interest rates remain higher than expected this year. JPMorgan (JPM) reported that profit rose as it earned more from interest payments, while conversely Wells Fargo (WFC) saw earnings shrink as interest income fell.
Meanwhile, precious metals continued to shine: Gold (GC=F) rallied above $2,400 to hit another fresh record, and silver (SI=F) traded at its highest since early 2021. Demand is seen as driven by investors seeking safety amid heightening Middle East tensions but shunning US government bonds amid inflation concerns.
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Jamie Dimon makes a good point to Yahoo Finance on interest rates
Fun call just now with reporters with JP Morgan (JPM) CEO Jamie Dimon and CFO Jeremy Barnum.
Topic of course was earnings but also, Dimon’s views on rates and the economy.
Dimon made a good point to me on rates (I had asked Barnum about how the firm is preparing for higher for longer interest rates):
“I just want to point out that rates being higher on their own isn’t that important, what is important is why — is it because of stagflation, that’s obviously a negative or is it because of healthy growth, that’s actually pretty good.”
Dimon went onto say he is not “predicting” a recession.
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