Stocks decreased on Friday following a series of better-than-expected earnings reports from major banks, raising concerns about potential interest rate hikes by the Federal Reserve in the upcoming meetings.

However, despite this, the major indices saw gains for the week. The Dow increased by 400 points, or 1.2%. The S&P 500 rose by 0.8%, and the Nasdaq Composite advanced by 0.3%.

JPMorgan Chase reported strong first-quarter profits and revenue, surpassing expectations, largely due to the Fed’s campaign of raising interest rates. Citigroup, Wells Fargo, and PNC Financial also announced robust results.

CEO Jamie Dimon cautioned investors in the company’s post-earnings conference call to prepare for higher interest rates than anticipated.

The Street seemed to take note, with analysts increasing their predictions for a quarter-point interest rate hike at the Fed’s May meeting and another hike in June.

Federal Reserve Governor Christopher Waller stated that the central bank needs to continue tightening monetary policy, further impacting the markets.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, suggested that it’s “definitely” possible for the United States to enter a mild recession following last month’s banking turmoil.

Meanwhile, retail sales data declined more than anticipated, indicating a weakening of Americans’ spending power and the US economy.

The latest monthly survey from the University of Michigan revealed that consumer sentiment remained relatively stable in April, despite lingering concerns about a recession.

Edward Moya, senior market analyst at OANDA, noted, “There was too much news to digest this morning, but the key takeaway is that the Fed has room to do more harm.”

Following the trading day, the Dow fell by 144 points, or 0.4%.

The S&P 500 tumbled by 0.2%.

The Nasdaq Composite sank by 0.4%.

As stocks settle after the trading day, levels might still change slightly.