Stocks fell on Thursday under criticism from the Federal Reserve of President Donald Trump. A decline in bank stocks also pushed down the broader market.
"I think the market will ignore it because (Fed Chairman Jerome) Powell will ignore it," said Maris Ogg, president of Tower Bridge Advisors. "He's a realtor … he'll think that rising interest rates are a bad thing, no matter what."
Fed officials, including Powell, have raised interest rates twice this year and pointed to two more by the end of 2018
"We'll see if it turns out that the president actually calls Powell chairman," he said Quincy Krosby, senior market strategist at Prudential Financial. "Many commentators pointed that out early – when it became clear that the Fed, headed by Powell, wanted to normalize interest rates, whether it would be two rate hikes or four rate hikes – that's the overall intention of the Fed Conditions are positive for raising interest rates while the underlying economy is still strong. "
Bank stocks declined substantially as interest rates fell. J.P. Morgan Chase, Citigroup, Bank of America and Morgan Stanley all lost more than 1 percent. Their declines drove the Financials Select Sector SPDR Fund down 1.3 percent.
Wall Street also digested the recent corporate earnings released as trade fears boiled.
IBM shares rose more than 3 percent after Dow The component reported gains and revenues that exceeded expectations. American Express, another Dow member, posted a profit slightly above estimates, while sales were slightly below estimates. American Express shares fell 2.7 percent.
eBay's shares fell more than 9 percent after the company released sales and forecasts that disappointed investors. However, the revenues exceeded the estimates. The technology giant Microsoft should prove after the conclusion of profits.