U.S. stock indexes showed mixed performance

 

U.S. stock indexes showed mixed performance on Friday morning due to weak retail sales data for March, suggesting a slowing economy. However, positive earnings from JPMorgan Chase, Citigroup, and Wells Fargo helped alleviate concerns over further stress in the banking sector. The S&P 500 banks index and the KBW Regional Banking index experienced gains.  In other news, BlackRock Inc's shares rose after the company surpassed analysts' estimates for quarterly profit. Boeing's shares, on the other hand, fell after the company halted some 737 MAX deliveries due to supplier quality issues.

 

Retail sales declined 1% in March compared to February, a greater drop than the 0.2% drop observed in the previous month. Automobile, electronics and home and garden store sales all contributed to the economic downturn. According to the report, Americans trimmed their spending at retail stores and restaurants for the second month in a row, indicating that consumers turned more cautious after a spending spree in January.

 

Analysts blame the drop in retail sales mostly on the Federal Reserve's year-long rate hike campaign, which is aimed at containing inflation by dampening domestic demand. According to figures released last week, job growth and service sector activity slowed in March, while the manufacturing sector remained weak. Despite dismal retail sales figures, traders are convinced that the Federal Reserve will raise interest rates by 25 basis points in May. Consequently, most predictions suggest that the U.S. economy will enter a recession in the second part of this year.