The stock market was set to end a winning week on a sour note as JPMorgan Chase led a decline in bank shares after it warned a recession was its base case for the year.
Futures for the Dow Jones Industrials slid 214 points, or 0.6%, early Friday to 34,105.
Futures for the S&P 500 declined 27.25 points, or 0.7%, to 3,976.25.
Futures for the NASDAQ Composite dropped 87.25 points, or 0.8%, to 11,447.
JPMorgan Chase posted revenue that beat expectations, but the bank warned it was setting aside more money to cover credit losses because a “mild recession” is its “central case.” The bank posted a $2.3-billion provision for credit losses in the quarter, a 49% increase from the third quarter. The stock fell more than 2%.
Wells Fargo shares also fell 2% after the bank reported its quarterly figures.
Meanwhile, Bank of America reported better-than-expected earnings for the fourth quarter, but the stock fell 2% in the premarket.
Delta Air Lines also reported earnings and revenue that beat estimates for the final quarter of 2022. However, the stock slid more than 5% in the premarket.
Investors have been awaiting these results to gain more insight into the health of the economy.
Stocks are headed for a winning week, with the Nasdaq and S&P on pace for their best weekly performance since November. The Nasdaq is up 4.1% through Thursday's close. The S&P has advanced 2.3%, while the Dow has added 1.7%.
In Japan, the Nikkei 225 fell 1.3%, while in Hong Kong, the Hang Seng Index gained 1%.
Oil prices picked up 38 cents to $78.77 U.S. a barrel.
Gold prices eked up 60 cents to $1,899.40 U.S. an ounce.