As investors digested a string of mixed bank reports, as well as the news of a surprising fall in U.S. retail revenue in December, influenced by the health crisis, the New York Stock Exchange plummeted on Friday. On Thursday, President-elect Joe Biden announced his $1.9 trillion support package, which was widely awaited by investors, while Fed chief Jerome Powell told the central bank that long-term support would be offered. After a turnaround in the case of Covid-19, the declaration of containment in three Chinese cities (more than 22 million inhabitants) has put a chill into the markets, causing oil to stumble.
At the close, the Dow Jones index dropped by -0.57 percent to 30,814 points, while the large S&P 500 index fell by -0.72 percent to 3,768 points, and the Nasdaq Composite index fell by -0.87 percent to 12,998 points, which is rich in electronics and biotech stocks.
For the week as a whole, the indexes dropped for the DJIA by 0.9 percent and for the other two indices by 1.5 percent. It should be remembered that the Russell 2000 grew by 1.5 percent over 5 sessions, representing the progression of average values.
The energy (-2.9 percent) and financial (-1.4 percent) indices of the S&P market weighed on the trend. Despite better-than-expected outcomes in the fourth quarter of 2020, JP Morgan Chase dropped -1.7 percent, while Citigroup lost 6.9 percent and Wells Fargo fell 7.8 percent, with both banks failing on their quarterly profits.
The preliminary consumer confidence index was below estimates in January, at 79.2, versus a business consensus of 80 and 80.7 in December.
On the other hand, in December, industrial output grew more than expected, up 1.6 percent on a month-on-month basis, versus a 0.5 percent forecast, and after a 0.5 percent gain in November. On the other hand, the Industrial Index of the New York-area Empire State was below estimates at 3.5, relative to 6 consensuses.