US stocks fell sharply after two Wall Street banks kicked off earnings season on a bad note.
JPMorgan suspended share buybacks as earnings and sales fell short of analysts’ expectations. The bank said it was preparing for a recession. Morgan Stanley had a similar earnings report.
The news comes on the heels of inflation data that prices rose 9.1% for the year in June. The data has led investors to believe the Federal Reserve will work harder to fight inflation. Nearly 90% of investors are pricing in a full-point rate hike at the central bank’s meeting next week, according to the CME.
The Dow lost 600 points, or 2%, on Thursday.
The S&P 500 dropped by 1.8%.
The Nasdaq Composite fell by 1.7%.
July 14, 2022 at 08:51PM