ll Street made a comeback Friday after a six-day slump in the S&P 500 that wiped away $2 trillion in stock market wealth. The Dow taking back just a fraction of what it lost during the worst week for stocks in months. I'm Conway Gittens in New York.
The rebound coming on the heels of strong results from the banking sector which have gone a long way to offset a long list of concerns including concerns about higher borrowing costs, inflation, Federal Reserve rate hikes. And worries that the trade spat between the US and China could slow down global economic growth.
JP Morgan Chase the biggest US bank by assets set the tone with better than expected results for the third quarter. CEO Jamie Diamond saying the company is benefiting from the Trump tax cuts. And deregulation, but warned quote, geopolitical issues are bursting all over the place end quote, at some point in the future, may have negative effects on the economy.
That warning did little to overshadow the fact that consumer banking units at JP Morgan, Chase, CitiGroup, and Wells Fargo, all which reported results on Friday, of bringing in more money despite rising interest rates. Banks may have sparked the rally, but it was tech stocks who took the lead.
The NASDAQ surged 2% Friday, led by gains in Apple and Microsoft. Analysts says the big earnings to watch next week include Goldman Sachs, Netflix, and Proctor & Gamble, and look for comments from big multinationals on pricing pressures and any downside from the tariffs.