US Stock Journal | JPMorgan’s Dow Jones Industrial Average fell 475 points on Wednesday (Spencer Platt via Getty Images)
US stocks fell significantly. The Dow Jones index closed almost 500 points. The S&P 500 index and the Nasdaq index fell more than 1% The scope of the decline was wide. The S&P 500 index fell below the 50-day once. moving average In the last five months, first. The first results of the earnings period did not bring excitement to US stocks. JPMorgan Chase warned that net interest income this year would not be in line with market expectations, and its stock price plunged 6%. It also made the market worry that US companies’ profits will be hurt as they continue to fight inflation. The decline in consumer confidence also affected market sentiment. Commodities continued to rise, with tensions in the Middle East, spot gold hit a record high of nearly US$2,420 an ounce, and New York oil futures hit a level of US$87. To round out the week, all three major US stock indexes fell, falling for two weeks in a row.
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Market conditions on April 12 (Friday)
l The Dow Jones index fell 475.84 points, or 1.24%, to 37,983.24 points. To summarize the week, the Dow fell 2.37%.
l The S&P 500 index fell 75.65 points, or 1.46%, to 5,123.41 points. It fell 1.56% for the whole week.
l The Nasdaq index fell 267.10 points, or 1.62%, to 16,174.09 points. It fell 0.45% this week.
l New York May oil futures closed at US$85.66 a barrel, up US$0.64 or 0.7%. It fell 1.4% in one week.
l New York gold futures for June delivery settled at $2,374.1 an ounce, up $1.4, or 0.1%. It rose 1.2% for the week.
l The 10-year US Treasury bond yield closed at 4.499%, down 7.7 points.
Banking giant JPMorgan Chase announced its first-quarter results, and last quarter’s net profit rose 6% year-on-year to US$13.42 billion, driven largely by the acquisition of First Republic Bank last year. However, the bank’s guidance for net interest income this year remained unchanged at $90 billion, disappointing the market, and the closing stock price fell nearly 6.5%.
Although the remaining banks that announced their results had satisfactory results, their stock prices generally fell. Although Citigroup’s earnings beat expectations, its stock price fell 1.7%, and Wells Fargo was soft.
The S&P 500 index was roughly sold off. According to FactSet data, as many as 476 stocks fell at one point, and all 11 industry sub-indexes were negative. At the same time, the S&P 500 index fell as much as 1.7% and fell below the 50-day moving average for the first time since November 3, 2023.
Among major technology stocks, only Apple was stable, while the rest fell Chip stocks were the hardest hit, with Nvidia down 2.7%, AMD down more than 4%, and Intel down 50%. The fear index (VIX) also rose to its highest level since October 2023 on Friday, closing up 16%.
Bank of America strategists said a rare simultaneous rally in technology and commodity stocks, along with a rise in bond rates, was reminiscent of a time when a bubble was forming. Strategists including Michael Hartnett wrote in a note that this price action is a “classic bubble market,” comparing it to the pre-tech bubble of 1999 and stating that the current situation means investors should sell bonds and USD, buying stocks Nasdaq and inflation hedges such as gold, commodities and cryptocurrencies.
The outlook for corporate profits is unclear, but inflation remains high. The president of the Federal Reserve Bank of Chicago said multiple inflation data had been higher than expected, and reiterated that the increase in housing costs slow before inflation can return to the 2% target. Kansas Fed President Jeffrey Schmid said the central bank should wait for clear evidence that inflation is returning to 2% before cutting interest rates, rather than adjusting monetary policy first.
According to preliminary data from a survey by the University of Michigan, the US consumer confidence index fell from a more than two-and-a-half-year high of 79.4 in March to 77.9 in April 2024. The number was well below the peak figure. market forecast of 79. The current situation index (79.3) and the expectations index (77) fell. Meanwhile, inflation expectations for the coming year hit 3.1%, the highest in four months, reflecting frustration that slowing inflation may have slowed.
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