On Wednesday, major US stock indices fell amid gloomy economic data and quarterly company reports.
Shares of Bank of America (NYSE: BAC) and Citigroup Inc (NYSE: C) were down after banks reported notably reduce in quarterly profit.
Goldman Sachs Group Inc. (NYSE: GS) reported a 49% drop in quarterly profit, as it reserved nearly $1 billion in loan losses and suffered significant losses on debt and equity investments.
Disappointing bank reports add to concerns over the prospects for the remainder of the corporate reporting season, Paul Nolte of Kingsview Investment Management in Chicago said.
In the coming weeks, “it will be more important to look at companies ... from a debt point of view,” he said, adding: “I’m not sure that the recovery will be as strong as everyone says.”
The Dow Jones Index fell by 1.86% to 23.504.35 points, S&P 500 – by 2.20% to 2.783.36 points, and Nasdaq Composite - by 1.44% to 8.393.18 points.
The US Department of Commerce said that the US retail sales fell by 8.7% in March compared with the previous month, and data on the business climate index of the Federal Reserve Bank of New York did not add optimism. Industrial production fell by 5.4%; this did not happen even in the crisis of 2008-2009. Manufacturing production fell even more - by 6.3%.
The reaction by the US authorities is unusual: Donald Trump, the US President, accused the World Health Organization of declaring the emergency too late, including due to hiding information about the epidemic from China. “The delay in declaring a health emergency cost too much. Even more time was lost when sending a team of experts from different countries to study the focus of the epidemic, ”- Trump said. However, his Twitter will not let lie that Trump also ignored this topic for three weeks, although the course of the epidemic in China already occupied the main pages of all world media. In the United States, by that time, more than one case of the disease was recorded.