Wall Street’s major indices opened lower on Tuesday amid renewed fears over a potential US-China trade conflict. The market also digested earnings from major US banks, which marked the start of the third-quarter reporting season.
In the early hours of trading, the Dow Jones Industrial Average dropped 477.11 points, or 1.03%, to 45,581.46. The S&P 500 fell 82.08 points, or 1.25%, to 6,571.53, while the Nasdaq Composite sank 409.57 points, or 1.81%, to 22,280.67.
BlackRock reported record assets under management at $13.46 trillion, and JPMorgan Chase raised its full-year net interest income outlook after surpassing Q3 profit expectations. However, BlackRock shares slipped 0.7% in premarket trading, while JPMorgan dipped 1.1% in premarket session.
JPMorgan Chase reported a 12% rise in profit, earning $5.07 per share on $46.43 billion in revenue, driven by strong performance in investment banking and trading.
Wells Fargo also saw a boost in profits, posting $5.6 billion in net income and $1.73 earnings per share, thanks to higher fees from consumer banking and credit cards. Goldman Sachs outperformed forecasts with a profit of $4.1 billion ($12.25 per share) and $15.8 billion in revenue, due to more deals and asset management.
Citigroup’s earnings were slightly lower than expected at $1.86 per share, but revenue grew to $22.09 billion, driven by higher banking fees.
These results impressed investors, as most banks exceeded expectations. The strong performance in areas like investment banking and lending signals a solid recovery in the financial sector, despite ongoing economic challenges. More banks are set to report their earnings later this week.