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US STOCKS-S&P 500, Dow set for weekly losses as banks, megacaps fall
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US STOCKS-S&P 500, Dow set for weekly losses as banks, megacaps fall
Apr 12, 2024 9:09 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

JPMorgan Chase ( JPM ) down after NII forecast miss

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Citigroup ( C/PN ) eases after lower Q1 profit

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Indexes down: Dow 0.94%, S&P 1.01%, Nasdaq 1.18%

(Updated at 11:26 a.m. ET/ 1526 GMT)

By Shashwat Chauhan and Shristi Achar A

April 12 (Reuters) -

The blue-chip Dow and the S&P 500 were on track for weekly

losses on Friday after most megacap growth stocks and chipmakers

retreated, while some big banks fell after reporting dour

quarterly earnings.

JPMorgan Chase & Co ( JPM ) dropped 5.9% after the bank's

forecast for its income from interest payments came in below

analysts' expectations.

Wells Fargo ( WFC ) edged 0.4% lower after reporting a more

than 7% fall in first-quarter profit, as it earned less from

customer interest payments. Citigroup ( C/PN ) lost 2.8% after its

first-quarter profit fell.

The S&P 500 banks index shed 3.3%, hitting its

lowest level in nearly a month.

Falling megacap growth stocks weighed on the three indexes,

with Nvidia ( NVDA ), Tesla and Meta Platforms ( META )

down over 1% each.

"Markets have run up a lot recently, so investors may be

looking for some excuses here and there in order to back off on

their overly optimistic positioning," said Jason Pride, chief of

investment strategy & research at Glenmede.

"After pretty major run-ups, you can find that the

little bit of disappointing news that comes out can actually be

the driving force for a sell-off."

Advanced Micro Devices ( AMD ) and Intel ( INTC ) lost

4% and 3.6%, respectively after a report that Chinese officials

had told the country's largest telecom firms earlier this year

to phase out foreign chips that are key to their networks by

2027.

Ten of the 11 major S&P 500 sectors were trading lower, with

information technology leading declines, down 1.3%.

The Dow and the S&P 500 eyed weekly losses as

sentiment was roiled this week following a

hotter-than-anticipated inflation reading that pushed traders to

scale back enthusiasm around the U.S. central bank cutting

interest rates.

Money market participants see an about 56% chance of the Fed

bringing in the first interest-rate cut in July, according to

the CME FedWatch Tool.

Meanwhile, Boston Fed President Susan Collins is eyeing a

couple of rate cuts this year, amid expectations that it could

take some time for inflation to return to its targeted level.

Investors now await Kansas City Fed President Jeffrey Schmid

and his Atlanta counterpart Raphael Bostic's comments later in

the day, for clues on the central bank's rate outlook.

On the data front, U.S. consumer sentiment ebbed in April,

while inflation expectations for the next 12 months and beyond

increased, a survey showed.

The CBOE Volatility Index, also known as Wall

Street's "fear gauge", hit its highest level since October 2023.

At 11:26 a.m. ET, the Dow Jones Industrial Average

was down 359.95 points, or 0.94%, at 38,099.13, the S&P 500

was down 52.45 points, or 1.01%, at 5,146.61, and the

Nasdaq Composite was down 193.92 points, or 1.18%, at

16,248.28.

Energy stocks bucked the trend to gain 0.4%,

tracking higher crude prices on heightened tensions in the

Middle East.

Declining issues outnumbered advancers for a 2.42-to-1

ratio on the NYSE and for a 2.79-to-1 ratio on the Nasdaq.

The S&P index recorded 12 new 52-week highs and eight new

lows, while the Nasdaq recorded 33 new highs and 124 new lows.

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