Wall Street Suffers Losses: Geopolitical Concerns

On Friday, Wall Street suffered losses which was led by the financial stocks as geopolitical concerns weighed on the markets.

As it happened…

Out of the 11 major S&P sectors, the S&P bank index dropped 2.6 percent and the S&P financial index fell 1.6 percent, weighing on the markets.

JPMorgan shares fell, shedding 2.7 percent after their quarterly profit declined against forecasts.
Penalties amounting to $1 billion saw Wells Fargo losing 3.4 percent despite exceeding their profit estimates Citigroup shares sank 1.6 percent.

Head of trading at Keefe, Bruyette & Woods in N.Y, RJ Grant said that the numbers in financials wouldn’t make you enthusiastic about having them.

They have proof…

He went on to say that the losses on U.S. Stocks on Friday was a result of reports from the State Department that there was proof that Syria had carried out a chemical weapons attack.

Director at Per Stirling Capital Management with offices in Austin, Robert Phipps reportedly said that investors are nervous with a threat of a potential strike in Syria and there is a lot of uncertainty right now.

Markets Fall

The Dow Jones slipped 0.5 percent or 122.91 points to 24,360.14, with a weekly gain of 1.79 percent.

The S&P 500 fell 0.29 percent or 7.69 points to 2,656.3, but made gains of 1.99 percent for the week.

The top performer on the S&P was energy gaining 1.1 percent.

The Nasdaq Composite lost 0.47 percent or 33.60 points to 7,106.65, for the week it added 2.77 percent.

Strong U.S. Economy

The U.S. economy is strong but has been weighed down by geopolitical developments on the stock markets.

U.S. Sanctions on Russia

Major sanctions which targeted 24 Russians, including wealthy business men and officials by the U.S. on April 9th saw Russia on Friday considering a ban or restrictions on a list of U.S. imports.

The U.S. imposed sanctions over alleged meddling in the U.S. elections in 2016 and other malicious activity.

Included in the sanctions is Russia’s 19th richest businessman, Oleg Deripaska who is reported to have a net worth of $6.7 billion.

Co-founder of one of the world’s biggest aluminium refineries Rusal, with a 48 percent stake. Rusal has stakes and assets in a number of countries and around 10 percent of the total sales goes to the U.S.

That’s not all…

Boeing shares fell 2.4 percent after reports that a Russian lawmaker is considering to stop supplying titanium to them, also reports that Boeing is experiencing issues with its 787 Dreamliner engines helped to support the fall.

U.S. exchanges volume was 5.78 billion shares with declining issues outnumbering advancing ones on the NYSE.

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