Wall Street falls sharply to close out its worst week since October

NEW YORK (AP) — U.S. stocks fell sharply following a mixed start to earnings reporting season. The S&P 500 sank 1.5% Friday. The Dow dropped 1.2%, and the Nasdaq composite fell 1.6% from its record. Worries about tensions in the Middle East rattled financial markets, and Treasury yields fell as investors looked for safer places for their money. JPMorgan Chase was among the stock market’s heaviest weights after giving a forecast for a key source of income that was below analysts’ estimates. The pressure is always on companies to produce fatter profits. But it’s particularly acute now given expectations that interest rates may stay high for a while.

US consumer sentiment falls slightly as outlook for inflation worsens

WASHINGTON (AP) — Consumer sentiment about the U.S. economy has ticked down but remains near a recent high, with Americans’ outlook largely unchanged this year. The University of Michigan’s index, released in a preliminary version, showed that sentiment is about halfway between its all-time low, reached in June 2022 when inflation peaked, and its pre-pandemic averages. An increase in gas prices may have contributed to the decline in consumers’ outlook. Americans’ perceptions of future inflation also edged up, likely reflecting still-elevated prices. Consumers expect inflation to be 3.1% a year from now, which would exceed the Federal Reserve’s 2% target. Still, that would be below the current level of 3.5%.

Oil and gas companies must pay more to drill on federal lands under new Biden administration rule

WASHINGTON (AP) — Oil and gas companies will have to pay more to drill on federal lands and satisfy stronger requirements to clean up old or abandoned wells under a final rule from the Biden administration. The Interior Department rule finalized Friday raises royalty rates for oil drilling by more than one-third, to 16.67%, in accordance with the sweeping 2022 climate law approved by Congress. The previous rate of 12.5% paid by oil and gas companies for federal drilling rights had remained unchanged for a century. The federal rate was significantly lower than what many states and private landowners charge for drilling leases on state or private lands.

Big banks warn of uncertain year ahead after mixed financial performances in the first quarter

NEW YORK (AP) — Big banks warned of an uncertain year ahead after mixed financial results during the first quarter in an environment of stubbornly high inflation and geopolitical clashes in Europe, the Middle East and elsewhere. JPMorgan reported a modest 6% rise in profits Friday while profits at Wells Fargo and Citigroup declined, though both topped Wall Street expectations. Dimon used language Friday that was similar to what he told investors in his annual shareholder letter earlier this week, when he warned that geopolitical events including the war in Ukraine and the Israel-Hamas war, as well as U.S. political polarization, could be creating an environment that “may very well be creating risks that could eclipse anything since World War II.”

— Bulletin wire reports