Stock market and bank earnings updates: Dow and S&P 500

Stocks fell on Friday after a series of earnings reports from major banks fueled concerns that the Federal Reserve would raise interest rates at its next two meetings.

However, the main indices strengthened this week. The Dow rose 400 points, or 1.2%. The S&P 500 rose 0.8% and the Nasdaq Composite rose 0.3%.

JPMorgan Chase on Friday reported first-quarter profit and revenue that topped expectations, boosted by the Fed’s interest rate hike campaign. Citigroup, Wells Fargo and PNC Financial also reported strong results.

CEO Jamie Dimon warned investors in the company’s post-earnings conference call that they should prepare for higher interest rates for longer than expected.

Wall Street seems to have taken notice. Analysts raised their bets on a rate hike by a quarter point at the Fed’s May meeting and another in June.

Federal Reserve Governor Christopher Waller said on Friday that the central bank needs to continue tightening monetary policy, which is weighing more on markets.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said it was “definitely” possible for the United States to enter a mild recession after last month’s banking chaos.

Meanwhile, retail sales data fell more than expected, indicating that the purchasing power of the American people and the US economy is weakening.

Consumer sentiment remained stable in April, even as fears of a recession persisted, according to the University of Michigan’s latest monthly survey.

“There is too much news to digest this morning, but the main takeaway is that the Fed has room to do more damage,” Edward Moya, senior market analyst at OANDA, said in a note.

The Dow slipped 144 points, or 0.4%.

The S&P 500 fell 0.2%.

The Nasdaq Composite slumped 0.4%.

While the stock stabilizes after the trading day, the level may still change slightly.