The S&P 500 index lost 0.7% last week — the first such decline of 2023 — as lackluster Q4 earnings results contributed to investors‘ recession fears.
The decline comes as the Q4 earnings season is starting off with less-than-stellar results as companies grapple with the effects of both inflation and the Federal Reserve’s rate increases. Adding to investors’ concerns, executives at banks including JPMorgan Chase (JPM) have said they are adding to reserves to prepare for a recession.
Related: What is a Recession?
All but three of the S&P 500’s sectors fell last week. Industrials had the largest percentage drop, falling 3.4%, followed by drops of 2.9% each in utilities and consumer staples while financials slipped 2.1%. The three gainers were communication services, which rose 3%; and energy and technology, up 0.7% each.
This week’s earnings calendar features a number of heavyweight companies including Microsoft (MSFT), Johnson & Johnson (JNJ), Tesla (TSLA), Boeing (BA), Visa (V), Mastercard (MA), Intel (INTC) and Chevron (CVX).
Key economic reports due this week include the first estimate of Q4 gross domestic product on Thursday and the personal consumption expenditures price index, a closely followed inflation measure, on Friday.
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