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

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Stocks slipped on Friday after a score of earnings beats from big banks raised concerns that the Federal Reserve will raise interest rates at its next two meetings.

However, the main indexes gained for the week. The Dow rose 400 points, or 1.2%. The S&P 500 gained 0.8% and the Nasdaq Composite advanced 0.3%.

JPMorgan Chase on Friday reported first-quarter profit and revenue that beat 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 interest rates to be higher later than expected.

Wall Street seems to have noticed. Analysts increased their bets on a quarter-point rate hike at the Fed’s May meeting and another in June.

The Governor of the Federal Reserve, Christopher Waller, said on Friday that the central bank must continue to tighten monetary policy, reducing the markets.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said it is “definitely” possible that the United States will enter a small recession after the turmoil in banking last month.

At the same time, retail sales data declined more than expected, suggesting that the spending power of Americans and the US economy is weakening.

Consumer sentiment was relatively stable in April, even as concerns about a recession eased, according to the University of Michigan’s latest monthly survey.

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

The Dow slipped 144 points, or 0.4%.

The S&P 500 fell by 0.2%.

The Nasdaq Composite sank 0.4%.

As stocks settle after the trading day, rates may still fluctuate slightly.

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