Wall Street closes week in the red pushed by falls in banking

The main US indices fell in the last session of the week, despite Joe Biden's announcement of the stimulus package he wants to see approved. Banking results, which, while far from ideal, were even better than expected, pulled Wall Street down.

Wall Street closed the week in the red, with the top three indices accusing the bank of reported poor results, which were even slightly above expectations. The plans of the next US president for a stimulus package were not enough to dispel investor concerns about some signs of the US economy.

The Dow Jones ended the session losing 57% to 30.814,26 points, while Nasdaq led the losses, falling 0,87% to 12.998,50 points. The S&P 500 closed down 0,71% to 3.768,45 points. Still, the declines could have been greater, as the Dow dropped 300 points in the afternoon.

The results coincide with the reporting day of the quarterly results of American banking, which presented mixed results, but fell between 2%, in the case of JPMorganChase, and 7,80% in the case of Wells Fargo. Interestingly, both banks even reported better than expected results.

The announcement of the economy support plan also seems to no longer have the effect it has achieved in past sessions. The next US president announced on Tuesday that he plans to see a third stimulus package approved that includes a federal unemployment benefit of $ 400 (€ 331,19) a week and direct payments of $ 1.400 (€ 1.159,17).

Oil is also losing ground, seeing its price drop 2,63% in the case of Crude WTI, partly due to new outbreaks of Covid-19 in the US, but also in China.

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