NEW YORK (AFP/APP): Wall Street stocks tumbled on Friday despite solid bank earnings as oil and gold prices shot up amid worries about a potential widening of conflict in the Middle East.
After spending the entire session in the red, the Dow Jones Industrial Average finished down 1.2 percent, or 475 points, at 37,983.24.
“Heightened geopolitical uncertainty in front of a weekend contributed to today’s sell-off,” said Briefing.com.
Market watchers cited worries about an imminent attack on Israel by Iran to retaliate for a strike in Damascus — a possibility also raised by President Joe Biden, who urged Iran against the move.
Oil prices surged more than two percent at session peaks before easing somewhat. Gold also benefitted from its status as a haven investment, breaking the $2,400 per ounce level. Investor attention was set to focus on the start Friday of the corporate earnings season after economic data released earlier this week largely killed off the possibility that the US Federal Reserve could begin cutting interest rates in June.
Equity markets took the recalibration of expectations of interest rate cuts in their stride as the data showing the US economy in strong health raised hopes that companies will report strong earnings.
At the start of the year markets had priced in six interest cuts by the Fed in 2024, but now expect only two.
JPMorgan Chase, Wells Fargo and Citigroup all reported better-than-expected earnings results for the first quarter. But shares in JPMorgan Chase, which have risen strongly this year, sank 6.5 percent, while the other two banks retreated by less. While Paris and Frankfurt edged lower, London stocks fizzed higher on data showing the UK economy grew for a second straight month in February, further fueling recovery hopes after sliding into a shallow recession in the second half of last year. Dimming hopes for US rate cuts continued to support the dollar, which surged to another 34-year high above 153 yen, putting Japanese officials in the spotlight after they said they were ready to intervene in markets to support their currency.
MOSCOW (Reuters): President Vladimir Putin on Monday appointed former deputy economy minister Oleg Savelyev as…
Belkis Wille For months now, Sudan’s Rapid Support Forces (RSF), an independent military force, together…
Baria Alamuddin Whether in US campuses, Western capitals or Arab streets, we have been swamped…
Dr. Mohammed Al-Sulami The EU and the Australian government last week announced new sanctions that…
LI YANG The deaths of Iranian President Seyyed Ebrahim Raisi, Foreign Minister Hossein Amirabdollahian and…
This website uses cookies.