U.S. stock markets faced a challenging week, as both domestic and international factors weighed heavily on investor sentiment. 

While corporate earnings reports from some companies exceeded expectations, broader economic concerns and geopolitical risks prompted cautious trading, leading to declines in major indices.

Wall Street continues in retreat

• S&P 500: -1.25%

• Dow Jones: -1.40%

• Nasdaq: -1.60%

The major U.S. stock indices finished the week with losses, mainly due to growing fears of global economic slowdown. Geopolitical tensions and concerns over the Federal Reserve's monetary policy also influenced market sentiment.

Impact of Quarterly Results

Some large NYSE-listed companies surprised with unexpected results, although these weren't enough to avoid the general decline in indices:

• Tesla (TSLA) reported an increase in profits, but its stock fell by 3.5% due to concerns about profit margins and demand.

• Johnson & Johnson (JNJ), on the other hand, saw a 2% increase in its stock, driven by strong results in its pharmaceutical division.

Concerns Over Global Growth and Trade Policies

U.S. stock markets were pressured by slowing economic growth in China, which impacted companies with exposure to the region. The release of China's GDP growth reports and expectations of a deeper slowdown heightened risk aversion in the markets.

While trade tensions with China have eased, they remain a key factor for investors, who fear that increased tariffs could affect company earnings.

Federal Reserve and Monetary Policy Decisions

The Federal Reserve continues to be a source of uncertainty for the markets. Although no immediate changes are expected in interest rates, analysts are closely watching any shifts in the Fed's monetary policy due to persistent concerns about inflation.

The Federal Reserve continues to closely monitor inflation trends and the labor market to adjust its monetary policies. 

Recent decisions have focused on the need to cool down the economy to curb inflation without triggering a recession. Additionally, economic data such as GDP growth and the unemployment rate remain key factors in their analysis.

Final Analysis

Market volatility is likely to continue as investors digest remaining quarterly results and look for clearer signals regarding the Fed's future policies. Global uncertainty, particularly economic developments in China and trade tensions, will remain a determining factor in market behavior in the short term.

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Sources

• Business Insider

• AP News

• CBS News

• MarketBeat