Wall Street slumps over sticky inflation and geopolitical fears!
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U.S. equities fell on Friday and logged losses for the week as investors fretted over sticky inflation, geopolitical concerns, and looming Federal Reserve policy. The S&P sank 1.55% to close at 5,123.41 last week, notching its largest weekly percentage loss since January. The Dow dropped 2.36% to 37,983.24 for its biggest weekly loss since last March. Tech-heavy Nasdaq slipped 0.45% to 16,175.09 on the week.?
Major bank shares slumped last week. JPMorgan Chase shares declined over 6% after releasing its Q1 results, while Wells Fargo slipped 0.4%. Citigroup slumped 1.7%. Meanwhile last week’s U.S. headline CPI accelerated to 3.5%, with the core at 3.8%, leading investors to realign their expectations surrounding Fed rate cuts this year.?
Looking at the macro space, “inflation has taken a turn for the worse and that has put more pressure on companies to deliver this earnings season,” said Mike Dickson, head of research at Horizon Investments told Reuters. “Everyone’s a bit jittery with intense focus on how good earnings need to be,” he said. ?
Heading into the weekend, the market saw “further risk off sentiment. You’re seeing there’s a flight to safety trade, with the dollar stronger, and we’re seeing equities sell off,” Rob Haworth, U.S. Bank Wealth Management senior investment strategist told CNBC. That comes “on the heels of the inflation data that tells us the economy’s still pretty hot and inflation is sticky; that’s what led [investors] to really adjust their expectations around the Fed,” he added.
On the week, WTI and Brent crude dropped 1.43% and 1.21% to $85.66 and $90.06 a barrel?respectively. However, oil rose around 1% on Friday as Israel braced for an Iranian attack over the weekend.?
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