U.S. stocks declined sharply for a second session Friday, with the Nasdaq Composite tallying its third weekly drop, after JPMorgan Chase posted disappointing earnings and Gap reported a decline in sales.
"There's a lot of uneasiness about how far and fast the market ran last year, so any piece of news, even a single earnings report, can have a contagion effect," said Dorothy Weaver, co-founder of Collins Capital.
JPMorgan Chase led declines on the S&P 500 after the bank posted first-quarter earnings below expectations. Gap also fell after the retailer reported a drop in same-store sales, with Janney Capital Markets downgrading its shares to neutral from buy. Wells Fargo, however, reported a better-than-projected rise in first-quarter net profit as the mortgage lender set aside less money to cover bad loans.
"Based on earnings, some bank stocks are doing better than others," said Peter Coleman, who oversees floor trading as director of sales trading for ConvergEx Group.