Jan 13 (Reuters) – The S&P 500 and Nasdaq declined on Friday as comments from major US bank executives fueled fears that the Fed’s tightening of monetary policy is dampening economic growth.
The largest US banks have increased reserves, preparing for a possible recession, and reported weak investment banking results.
Shares of JPMorgan Chase & Co fell 1.2% as the bank set aside $1.4 billion in anticipation of a mild recession. At the same time, the creditor’s quarterly profit exceeded forecasts.
The head of the bank, Jamie Dimon, listed a number of uncertainties facing the economy. Among them, he mentioned geopolitical tensions and still high inflation.
Bank of America Corp reported higher-than-expected earnings, but bank chief Brian Moynihan also acknowledged that “the economic environment is increasingly slowing down.” The bank’s shares fell 2.7%.
The Dow Jones index rose by 0.23% to 34.268.46 points by 19:26 Moscow time, the S&P 500 index fell 0.17% to 3.976.53 points, and the Nasdaq fell by 0.17% to 10.982.06 points. Original message in English available by code (Shubham Batra, Ankika Biswas and Amruta Khandekar in Bangalore)