By Liz Moyer
Investing.com -- U.S. stocks fell on Thursday after earnings from major lender JPMorgan Chase stoked fears about an economic slowdown.
At 9:38 AM ET, the Dow Jones Industrial Average fell 553 points, or 1.8%, while the S&P 500 fell 1.8% and the NASDAQ Composite was down 1.7%.
JPMorgan Chase & Co's (NYSE:JPM) profit and revenue both disappointed expectations and the bank set aside more than $1 billion for possible credit losses down the road. It also suspended buying back its own shares, a bearish sign the bank is preparing for leaner times ahead.
Inflation and weakening consumer sentiment, along with the Federal Reserve’s unprecedented efforts to cool the economy are likely “to have negative consequences on the global economy,” said Jamie Dimon, the bank’s CEO.
JPMorgan shares fell 4.8%.
Meanwhile, the PPI data didn’t ease concerns after a red-hot consumer inflation number on Wednesday. The price of goods leaving the factory gate rose by 1.1% for the month in June, more than the 0.8% expected, and the 0.9% in May.
Over half of the June increase was attributable to gasoline prices, which jumped 18.5%.
Taiwan Semiconductor Manufacturing (NYSE:TSM) shares rose 0.5% after its second quarter numbers beat estimates and it showed positive trends in chip activity for autos and internet-of-things.
Oil fell. Crude Oil WTI Futures was down 3.8%, to $92.62 a barrel, while Brent Oil Futures crude fell 3.1%, to $96.42 a barrel. Gold Futures fell nearly 2%, to $1,701 an ounce.