The news came on thursday evening that JP Morgan announced $2 billion derivative trading loss as hedging bets went wrong. The news weigh down the sentiment on Dow Jones futures and banking stocks who were winner in Thursday's trading session plunged more than 2 % while JP Morgan stock is down more than 7 % in pre market trading. How it will impact today's market action?

Financial Sector will push stocks lower on Friday and weakness along with sentiment may drag down S &P below 1350 critical level. Whether markets will recover at the end of the day or not that will be a question mark, but if  S&P closes below 1350 then next week it may see more weakness and lead a sell off in Global Markets. 

Another alarming condition is whether financial institutions are really healthy enough to whether next crisis, as European contagion might spread?