Bloomberg News reported Monday afternoon that the hiring slowdown and spending cuts will take place in some departments and stem from a move “to be more cautious in uncertain times,” citing people familiar with the matter who asked not to be identified. their. Apple shares closed down 2.1%. The S&P 500 and Nasdaq each fell about 0.8 percent, while the Dow Jones Industrial Average lost more than 200 points, or 0.7 percent. Before the report, all three major indices hit session highs of at least 1%. The Wall Street Journal reported that Federal Reserve officials “have indicated they are likely to raise interest rates by 0.75 percentage points later this month.” Expectations for a 100 basis point hike by the Fed at its next meeting on July 26 and 27 rose last week after a tepid Consumer Price Index (CPI) reading for June. Bank of America (BAC) and Goldman Sachs wrapped up banking results ahead of Monday’s session. Goldman Sachs reported a smaller-than-expected 48% drop in second-quarter profit, as losses were partially offset by strength in fixed income trading. Meanwhile, Bank of America saw its profit fall 34%, pulled by a decline in investment banking revenue amid slower trading activity. The results come after the financial sector posted its best intraday rally since May on Friday, boosted by a notable second-quarter decline from Citigroup ( C ), a day after traders weighed disappointing financials from JPMorgan ( JPM ) and of Morgan Stanley (MS). JPMorgan Chief Jamie Dimon warned on Thursday in a post-earnings call that risks to the US economy looked “closer than before” and said the outlook would depend on “the effectiveness of quantitative tightening and the flawed, volatile shopping”. Similar commentary is expected from leaders across corporate America this week, as more companies reveal how their businesses fared during a volatile past quarter. Not only are the numbers expected to reflect softer earnings, but traders are also bracing for possible guidance revisions as companies outline the impact of rising prices, quantitative tightening and the war in Ukraine on their business outlook. The story continues “The most important indicator of the economy in the coming weeks will be earnings announcements as companies report,” Gargi Chaudhuri, Head of iShares Investment Strategy, Americas at BlackRock, said in a note. NEW YORK, NEW YORK – JULY 12: A woman walks near the New York Stock Exchange on July 12, 2022 in New York City. Wall Street returns to decline amid recession, S&P 500 closed 1.2% lower, while tech stocks pushed Nasdaq down 2.3%. (Photo by John Smith/VIEWpress) “We will be watching to see if companies are still able to continue to push higher prices on their consumers and which sectors are significantly downgrading their earnings forecasts for the future,” Chaudhuri added. “We’ll also be watching to see how many downside risks will feature in the earnings calls.” More than 70 companies are scheduled to report results this week. Big tech gains are expected to fall, starting with Netflix ( NFLX ) after the market closes on Tuesday, Tesla ( TSLA ) after the bell on Wednesday and Twitter ( TWTR ) before trading opens on Friday. Monday’s moves in markets come after a rally on Friday that saw stocks close sharply higher as Wall Street tried to shake off losses from a turbulent week caused by June’s CPI shock. However, the S&P 500, Dow and Nasdaq ended the week lower. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
