Wall Street saw large drops in financial stocks as banks failed to uplift, not to mention the Syrian conflict only continued to spread fear and worry investors.
The S&P 500 banks index dropped around 2.6 percent while the financial index saw a loss of 1.6 percent which makes for the largest amount throughout all 11 leading S&P sections.
JPMorgan Chase & Co, which is the largest bank in the U.S, leading by assets, saw a 2.7 percent drop in shares after failing to live up to the expectations of their quarterly shares. Other banks continued to struggle as well, like Wells Fargo, which saw a large drop of 3.5 percent after stating that a massive fine of $1 billion due to several investigations underway.
Head of trading at Keefe, Bruyette & Woods, RJ Grant spoke up, saying: “If you didn’t own financials going into the quarter, there was nothing in the numbers today that would make you excited about owning them.”
Stocks continued to drop after the U.S state department confirmed that it had solid evidence of Syria’s chemical attacks on the town of Douma in the center of Damascus.
With the possibility of even more attacks in Syria, stocks continue to drop at an alarming rate. A director at Per Stirling Capital Management, Robert Phipps, stated that chances of another strike in Syria “is enough to cause heartburn for the market,”
He also continued to say: “There’s a ton of uncertainty right now so investors don’t want to go into the weekend particularly long.”
The results on Friday regarding banks kicked off well this season, with predictions of profits at S&P by Thomson Reuters increasing by 18.6 percent. The U.S economy’s performance is doing well, although issues concerning geopolitics continue to weigh down on stock markets.