The S&P 500 index fell 1.6% last week, its second consecutive weekly decline, as higher-than-expected consumer price data and cautious guidance from JPMorgan Chase added to market jitters.
The market benchmark ended Friday’s session at its lowest closing level since mid-March. It’s still in positive territory for 2024 with a year-to-date climb of 7.4%, but off to a rocky start for Q2 with a 2.5% drop so far.
The decline comes as investors are eager for signals about the Federal Reserve’s next move. While hopes for rate cuts had fueled much of the stock market’s gains in Q1, the March consumer price index on Wednesday came in higher than expected, prompting investors to curtail their prior optimism that rate cuts will start in June.
Investors are also keeping a close eye on Q1 corporate results as earnings season begins.
JPMorgan on Friday reported better-than-expected Q1 earnings and revenue, but the bank raised its full-year expense outlook and maintained its 2024 net interest income outlook. Investors were disappointed by the lack of an increase in the net interest income guidance. JPMorgan’s shares fell 6.5% on Friday, resulting in a weekly decline of 7.4%.
Every sector in the S&P 500 fell last week, led by financials, which shed 3.6%. Among the other hardest-hit sectors, materials, health care and real estate each fell 3.1%. Technology had the smallest decline, down by 0.2%.
This week, companies expected to release quarterly earnings include Goldman Sachs Group (GS), Charles Schwab (SCHW), Johnson & Johnson (JNJ), Bank of America (BAC), among others.
Economic data due include US retail sales, housing starts and building permits and existing home sales for March, among other reports.
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