The US stock markets opened with a clear decline on Friday.
Among the main indices, the S&P 500 was down 0.8 percent, the Nasdaq was down 0.8 percent, and the Dow Jones was down 0.5 percent.
At the top of the exchanges Tesla was down six percent.
In the United States, the earnings season kicked off on Friday with the results of the giant banks.
JPMorgan’s and Bank of American the reports were disappointing to investors, even though the results beat analysts’ forecasts. At the opening, JPMorgan’s price was down 1.5 percent and BofA’s was down 1.3 percent.
JPMorgan made a $1.4 billion provision for a mild downturn. Managing director Jamie Dimon painted dark clouds over the economy in his comments, although according to him, consumers are still spending plenty of money and companies are in a healthy state.
Like JPMorgan, Bank of America reported better-than-expected earnings but warned of a slowing economy.
Wells Fargo and Citigroup also made large reservations due to the deteriorating general economic situation. Wells Fargo’s result was also weighed down by the expenses related to the investigation of the accounting scandal. Wells Fargo’s price was down 3.8 percent and Citigroup’s 1.3 percent at the opening.
“Among the major banks, Wells’ report was the weakest today. The company continues to underperform”, of Great Hill Capital manager Thomas Hayes commented to Reuters.
In recent weeks, several large banks have announced large layoffs.
“Comments about the recession and banks’ eagerness to strengthen their balance sheets in case of credit losses make people nervous. The results of the banks were quite good overall, and the banks are very well capitalized,” Kingsview Asset Managementin portfolio manager Paul Nolte your sum to Reuters.
Yesterday’s US inflation announcement of the December figures was right in line with forecasts, and the inflation report was received by the market with a cautiously positive response. The US Federal Reserve will next decide on interest rates at the beginning of February. The market is considering whether the Fed is going to raise interest rates by 25 or 50 basis points.