Stocks slipped Thursday as big bank earners disappointed an already jittery Wall Street as market participants assessed the possibility of an even tighter monetary policy from the Federal Reserve. The Dow Jones Industrial Average fell over 100 points, while the S&P 500 dipped 0.3% lower and the Nasdaq Composite inched 0.03% higher.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
All eyes were on JPMorgan Chase
"In our global economy, we are dealing with two conflicting factors, operating on different timetables," CEO Jamie Dimon said on Thursday. "The U.S. economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy."
"But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen auntitavite tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effect on global energy and food prices are very likely to have negative consequences on the global economy sometime down the road," Dimon added.
Morgan Stanley
Elsewhere, the producer price index for final demand, which tracks wholesale and business prices, jumped 11.3% year-over-year in June and 1.1% month-to-month, according to the Labor Department's report published Thursday, demonstrating increased inflationary pressures on the wholesale market.
Initial unemployment claims also unexpectedly rose high in the latest weekly data as the labor market continues to show signs of cooling as interest rates rise and higher prices impact businesses. First-time jobless claims totaled 235,000 for the week ended July 2, increasing by 4,000 from the prior week's reading, according to the Labor Department.
Traders are anxiously awaiting the Labor Department's June jobs report due Friday morning, which will offer a comprehensive look into how the broader labor market is performed amid increasing inflation, higher interest rates, and recession concerns. Wall Street is also looking ahead towards more big bank earnings reports from Wells Fargo