Wall Street stocks retreated Friday following a positive session on European bourses, as disappointing US retail sales data offset a lift from better-than-expected bank earnings. Retail sales fell by a surprisingly big one percent in March, extending a downward trend that signals cooling in the world’s biggest economy. But that downcast reading was countered by surprisingly good earnings from JPMorgan Chase and other large banks that cheered investors nervous about the sector. After opening modestly higher, major US indices spent the rest of the day in the red. Analysts pointed to hawkish comments from Federal Reserve Governor Christopher Waller that prompted a rethink of US inflation reports this week. Easing inflation earlier raised hopes for a pause in interest rate hikes soon. “Wall Street got scared after strong results from JPMorgan, surging inflation expectations, and some hawkish Fed speak,” said Oanda’s Edward Moya, pointing to fears that the Fed could raise rates not just in May but also in June. The S&P 500 ended 0.2 percent lower, cutting into its gains for the week. Chris Beauchamp, chief market analyst at online trading platform IG, said the poor US retail sales figures had investors “fretting again about a US recession.” “While it is a Friday, and risk appetite is hard to sustain, today’s losses after Thursday’s gains show how delicate the rally in US equities is,” he said. JPMorgan Chase surged more than seven percent following a blowout earnings report, while Citi jumped 4.8 percent. At the other extreme, Boeing plunged 5.6 percent after disclosing a problem with a supplier part on the 737 MAX that is expected to slow deliveries of new jets. Earlier, the Paris CAC 40 stocks index of leading French companies hit a new record-high, closing 0.5-percent up at 7,519.61 points, buoyed in part by strong earnings Thursday from luxury group LVMH. London and Frankfurt also rose, while oil prices edged higher. After hitting a 12-month low against the euro on Thursday, the dollar rebounded somewhat Friday. Moreover, The U.S. dollar bounced back in late trading on Friday as U.S. Treasury yields went up after the release of U.S. economic data and hawkish comments from a Fed official. The dollar index, which measures the greenback against six major peers, rose 0.59 percent at 101.6179 in late trading. In late New York trading, the euro decreased to 1.0999 dollars from 1.1046 dollars in the previous session, and the British pound decreased to 1.2414 dollars from 1.2523 U.S. dollars in the previous session. The U.S. dollar bought 133.7870 Japanese yen, higher than 132.7800 Japanese yen of the previous session. The U.S. dollar increased to 0.8939 Swiss francs from 0.8882 Swiss francs, and it rose to 1.3360 Canadian dollars from 1.3339 Canadian dollars. The U.S. dollar rose to 10.3245 Swedish Krona from 10.2654 Swedish Krona. Christopher Waller, a member of the Fed’s governing board, said in a speech on Friday that there is a need to continue to raise interest rates because inflation is “still much too high.”