If prices keep rising, a nightmare scenario for the US economy is a real possibility


The Dow was down 1% Friday and is off practically 1.3% in the course of the previous 5 days. The common of 30 blue chips has now fallen about 1.6% to date this month.

The S&P 500 and Nasdaq dipped 0.5% and 0.1% respectively, with each set to drop about 1% for the week. The S&P 500 is down practically 3% in 2022 whereas the tech-heavy Nasdaq has slid greater than 5%.
A weak retail sales report for December did not assist issues on Wall Street. Consumer spending surprisingly fell throughout that key vacation purchasing month, elevating issues that runaway inflation is lastly taking a toll on the financial system.
But whereas traders have been shunning big techs like Apple (AAPL), Microsoft (MSFT) and Tesla (TSLA) this 12 months, financial institution shares have been a brilliant spot for the market — till Friday. Investors have been disenchanted by JPMorgan Chase’s practically 15% drop in earnings from the fourth quarter of 2020.
If prices keep rising, a nightmare scenario for the US economy is a real possibility
Shares of JPMorgan Chase (JPM) have been down 6%. Fellow financials (and Dow parts) Goldman Sachs (GS), which reviews earnings subsequent Tuesday, and American Express (AXP) every fell about 4% too.
Citigroup (C) and BlackRock (BLK), which each reported earnings as well Friday, have been additionally decrease. Wells Fargo (WFC) was the brilliant spot for banks, rallying after posting better-than-expected outcomes.
More big banks, together with Bank of America (BAC), Morgan Stanley (MS) and Truist (TFC), will report their ends in subsequent week’s holiday-shortened buying and selling session. Earnings are additionally on faucet from shopper merchandise king Procter & Gamble (PG), airways United (UAL) and American (AAL) and streaming big Netflix (NFLX).

The inventory market is closed Monday in observance of Martin Luther King, Jr. Day.

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