U.S. stocks plummeted Thursday to reach another lost week on Wall Street as investors diverted large sums of money from the bank and resumed another hot CPI print released earlier this week.
The S&P 500 fell 1.2% and the Dow Jones Industrial Average withdrew from a slight improvement earlier in the session to close by 0.3%. Nasdaq Composite fell 2.2%, reversing profits from a jump on Wednesday in its best form since March 18. Meanwhile, Treasury yields continued, with a 10-year benchmark beating of 2.8%.
Most U.S. market indicators finished low for the second consecutive week as the Eastern European war, inflationary pressures and anticipation of additional countermeasures by the Federal Reserve to reduce rising prices continued to weigh heavily on the nation.
"There is a lot of fear and anticipation as we enter this age of high interest rates," Portia Capital Management owner and president Michelle Connell. "We are not sure how much the Fed will charge them. There is a lot of uncertainty. ”
The social media platform Twitter (TWTR) re-emerged on Thursday after Tesla CEO Elon Musk promised to buy the platform for $ 54.20 per share, or about $ 41 billion. In a bid by the company to be featured in the SEC's new submission, Musk said Twitter must be kept secret in order to make effective changes. Twitter shares fell 1.5% to the $ 45.18 episode by the end of Thursday.
Investors have cast quarterly results from bank survivors Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), and Citigroup (C) which marked the beginning of the 2022 downturn, with profits declining across the board after growth. of the industry last year in which it benefited from record-keeping operations and fundraising for the release of earmarked funds set aside for potential epidemic loan losses.
The first set of reports preceded a quarter-on-month wage growth than in the past. However, earnings are expected to be a bright spot for investors who for the most part this year have been exposed to sharp market volatility associated with global risk, inflationary pressures and fears of financial instability could lead to a recession as the Federal Reserve sets its target. mountain measuring systems.
Analysts have adjusted their expectations for earnings in the first quarter, lowering the combined EPS forecast for Q1 by 0.7% from $ 52.21 to $ 51.83. On the other hand, EPS forecast for the second quarter increased 1.6% from $ 55.16% to $ 56.07, 2.4% from $ 57.82 to $ 59.23 in the third quarter, 3.9% from $ 58.31 to $ $ 60.59 for the fourth quarter and 2.0% $ 223.43 to $ 227.80 by 2022 in total.
Economists at the Bank of America in an article released this week also predicted a quarter of a strong wage despite headlines of bad economic news throughout history.
"Leading indicators and early reporters raise the risk of EPS strikes in Q1," said BofA, adding that the financial institution expected a strike of 4%, or $ 53.50 against the $ 51.54 consensus. However, the bank warned analysts' expectations on record levels in future areas were "too high."
"History suggests that oil shocks create weak consumption with a three- to four-quarter lag, indicating a decrease in 2H," the note said.
6:10 p.m. ET Wednesday: Futures open flat as Wall Street looks ahead to more bank earnings
Here were the main moves in markets heading into overnight futures trading Wednesday:
