The major averages took a hit again as the S&P 500 suffered its worst day since January due to bank earnings and rising tensions in the Middle East. The Dow Jones Industrial Average fell 475 points or 1.2%. The S&P 500 fell 75 points or 1.4% while the Nasdaq Composite declined 267 points or 1.6%.

JPMorgan Chase led the banks lower down 6% on earnings. The earnings were actually better than expected, but net interest income, a key measure of what it makes through lending activities, could be a little short of what Wall Street analysts are expecting in 2024. CEO Jamie Dimon also warned about persistent inflationary pressures weighing on the economy.

Wells Fargo and Citigroup were modestly lower following earnings as well.  

All the sectors fell into the red including the energy sector. 

Oil prices continued their rise on reports that Israel is preparing for a direct attack by Iran this weekend, in what would be the biggest escalation of tensions in the region since the outbreak of the Israel-Hamas war last October. U.S. crude spiked to $87 a barrel, but then pulled back. Investors fear oil could spike to $100 if there is a serious attack against Israel.

The Treasury yields are quiet today, but up sharply for the week. The benchmark 10-year was up more than 10 basis points during that time, while the 2-year has risen more than 15 basis points.

For the week, the broad market S&P 500 index dropped 1.56% while the Dow fell 2.37%. The tech-heavy Nasdaq was only down 0.45% on the week.