Stocks fell on Friday, giving up early-session gains a day after a historic rally as investors digested inflation expectations.
The Dow Jones Industrials fell 299.35 points, or 1%, to 29,739.37
The S&P 500 fell 69.42 points, or 1.9%, to 3,600.49
The NASDAQ Composite fell 257.78 points, or 2.4%, to 10,391.37.
Stocks fell to session lows after a University of Michigan survey of consumers showed inflation expectations were rising, and the Federal Reserve is likely to be watching closely.
Earlier in the session, banking stocks rose, leading thebroad market, following four key earnings reports. Wells Fargo rose more than 2% after beating Wall Street’s revenue expectations. JPMorgan jumped more than 1% and Citigroup rose more than 2%.
The positive moves come amid negative earnings season forecasts. According to the latest analysts’ estimates, earnings for S&P 500 companies rose a meager 2.4% in the third quarter. This is the worst growth since the third quarter of 2020, at the heart of the pandemic.
Treasury prices fell slightly, increasing the yield to 4.01% from 3.96% on Thursday. Treasury prices and yields move in opposite directions.
Oil prices fell by $2.99 to $86.12 per barrel.
Gold prices were down $24.50 to $1,652.50 an ounce.