The major domestic equity indexes closed out the trading day on Friday in negative territory as the financial sector led the parade into negative territory. Part of the problem was that the first earnings results posted by several large banks failed to impress the Street. As a result, the S&P banks index fell 2.6 percent and the broader S&P financial index lost 1.6 percent, the most among the 11 major S&P sectors.

Shares of JPMorgan Chase, the largest domestic bank by assets, fell 2.7 percent after the bank’s quarterly earnings number came in slightly short of expectations. JPMorgan shares were the largest weight on the S&P 500.

Wells Fargo fell 3.4 percent after the bank said it may have to pay a penalty of $1 billion to resolve investigations. Citigroup ended the day down 1.6 percent despite exceding earnings estimates.

Loss on Wall Street were also partially in response an announcement from the State Department indicating it had proof that Syria carried out a recent chemical weapons attack in the town of Douma.

For the week, the S&P 500 chalked up a gain of 1.99 percent, the Dow was up 1.79 percent, and the Nasdaq was up 2.77 percent.

Friday’s bank results kicked off earnings season, with Thomson Reuters data predicting profits at S&P 500 companies increased by 18.6 percent in the first quarter from a year ago, their biggest rise in seven years.

While the U.S. economy is performing well, geopolitical issues are weighing on stock markets this year. For example, senior Russian lawmakers said on Friday that the lower house of parliament would consider draft legislation giving the Kremlin powers to ban or restrict a list of U.S. imports, reacting to new U.S. sanctions on Russian tycoons and officials.

Boeing was down 2.4 percent after a Russian lawmaker said the country may stop supplying titanium to the company. Issues with Rolls Royce engines for Boeing’s 787 Dreamliner planes also weighed on the company’s shares.

The top gainer among S&P sectors was energy, up 1.1 percent as oil prices rose.

Tesla chalked up a gain of 2.1 percent after Elon Musk said the electric car maker would be profitable in the third and fourth quarters and would not need to raise any money this year.

Approximately 5.78 billion shares changed hands on the major domestic equity exchanges, as compared to the 7.22 billion share average over the past 20 trading days.

Fed Proposes Capital Changes

The Federal Reserve on Friday proposed revising bank regulatory capital rules to ease the impact of new international accounting standards for credit losses.

In June 2016, the Financial Accounting Standards Board issued a new accounting standard for credit losses which is effective for some firms as early as January 2019 and is expected to dent firms’ balance sheets.

The Fed has proposed changing its regulatory capital treatment of credit loss allowances under the new standard and would also allow banks to phase in the effects of adopting the new standard over three years.