The Dow Jones Industrial Average fell 477.11 points, or 1.03%, to 45,581.46 in the early trading hours. The Nasdaq Composite dropped 409.57 points, or 1.81%, to 22,280.67, while the S&P 500 dropped 82.08 points, or 1.25%, to 6,571.53.
Tuesday saw a weaker opening for Wall Street’s main indexes due to fresh concerns about a possible trade war between the US and China. As the third-quarter reporting season got underway, the market also took in the results of the biggest US banks.
The Dow Jones Industrial Average fell 477.11 points, or 1.03%, to 45,581.46 in the early trading hours. The Nasdaq Composite dropped 409.57 points, or 1.81%, to 22,280.67, while the S&P 500 dropped 82.08 points, or 1.25%, to 6,571.53.
After exceeding Q3 profit projections, JPMorgan Chase increased its full-year net interest income prediction, while BlackRock announced record assets under management at $13.46 trillion. However, JPMorgan’s shares fell 1.1% during the premarket session, while BlackRock’s shares fell 0.7%.
Strong performance in trading and investment banking helped JPMorgan Chase record a 12% increase in earnings, earning $5.07 per share on $46.43 billion in sales.
Consumer banking and credit card fees increased Wells Fargo’s profitability as well, resulting in $5.6 billion in net income and $1.73 earnings per share. Due to greater acquisitions and asset management, Goldman Sachs exceeded projections with a profit of $4.1 billion ($12.25 per share) and $15.8 billion in sales.
Despite slightly lower-than-expected profits per share of $1.86, Citigroup’s revenue increased to $22.09 billion due to higher banking fees.
The majority of banks surpassed investors’ expectations, which pleased them. Notwithstanding persistent economic difficulties, the financial industry is showing signs of a robust comeback because to the impressive performance in sectors including lending and investment banking. Later this week, other banks will release their financial results.