Stock market news, live updates: July 14, 2022

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U.S. stock futures pointed to deeper losses at Thursday’s open as investors reeled from shock inflation data that renewed worries over aggressive Federal Reserve action and digested earnings from some of Wall Street’s big banks.

Futures tied the S&P 500 dropped 1.4% in pre-market trading, and the Dow Jones Industrial Average shed 470 points, or 1.5%. Contracts on the tech-heavy Nasdaq lost 1%.

After the moves, All three major indexes fell WednesdayFollowing fresh CPI data which showed prices across the U.S. Economy The fastest rate of growth since 1981.

In economic data, initial jobless claims increased last week. This could be a sign that the labor market is cooling as the Federal Reserve tightens their financial conditions. The number of Americans filing for unemployment insurance for the first time rose to 244,000 during the week ended July 9. By 9,000 over the previous period, Labor Department data showed Thursday morning. Bloomberg polled economists to determine that they expected the current figure to be 250,000.

JPMorgan ChaseJPMAfter reporting a 28% drop in profit in the second quarter, ), ) was front and center on Thursday morning The decline can be attributed to $1.1 billion in provisionCredit losses due to fears of an economic downturn. The results caused shares to drop as high as 4%

“In our global economy, we are dealing with two conflicting factors, operating on different timetables,” CEO Jamie Dimon said, “The U.S. economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy.”

“But geopolitical tensions, high inflation and waning consumer confidence, as well as the unpredicted quantitative tightening and its effects on global liquidity and their effects on global liquidity and global liquidity, together with the war in Ukraine, which has a harmful effect on global energy prices and global energy, are all very likely to have adverse consequences for the global economy at some point down the line.”

Morgan Stanley (MS) revealed Results that were below analyst expectationsThis was due in part to a decline in investment banking revenues, which has been affected by volatile market conditions. In the first trade, shares fell as high as 2.6%

Citi (a bank peer) was impacted by the earnings.C) and Wells Fargo (WFC) down by 1.4% and 1.3%, respectively, pre-market ahead of their own earnings on Friday.

Jamie Dimon, JPMorgan Chase CEO, speaks at North America’s Building Trades Unions’ (NABTU), 2019 legislative conference, Washington, U.S.A., April 9, 2019. REUTERS/Jeenah Moon

On the back of rising concerns about a supply shortage, commodity markets were still under pressure. West Texas Intermediate (WTI), crude futures dropped by $2.24, or 2.3%, to $94.06 a barrel in the early trading. Brent Crude Oil fell $1.94, which is 1.95%, at $97.63.

The Bureau of Labor Statistics’ Consumer Price Index saw a 9.1% year-over month increase, up from the 8.6% recorded in May. “Core” CPI, which excludes the more volatile food and energy components, rose 5.9% in June, compared to 6.0% in the prior reading.

“Markets had a knee-jerk reaction after the eye-popping inflation numbers and the headline number of 9.1% only makes the job that much harder for the Fed,” Allianz Investment Management Senior Investment Strategist Charlie Ripley said. “As a result, the Fed is likely going to send a hawkish message at the July meeting, and it would be a mistake to think that a rate hike less than 75 basis points is in the cards.”

Even strategists speculated that the headline was a blowout. 100 basis points might now be on the agenda — a move that would mark the Most combative monetary intervention in the 1990s.

“Everything is in play,” Raphael Bostic, President of Atlanta Fed, told reportersWednesday, March 13, in St. Petersburg Florida When asked if that included lifting interest rates by a full percentage point, he said, “it would mean everything.

Yahoo Finance reporter Alexandra Semenova. Follow her on Twitter @alexandraandnyc

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