Bank stocks fell sharply on Wall Street

Bank stocks fell sharply on Wall Street

Before trading opened on the US stock exchanges on Tuesday, there was some kind of good news – at least for those who are crossing their fingers that the central bank “The Federal Reserve” will soon stop raising interest rates.

Data from the ADP Research Institute showed that US employers created 145,000 new jobs in March, far less than the 210,000 jobs expected, according to Bloomberg.

When trading opened on the New York stock exchanges, the effective interest rate on two-year government debt fell by 0.8 per thousand, indicating that the market is pricing in fairly low interest rates.

Trend-finding indices fell slightly from the start, before technology stocks plunged further. Upon closing at 10pm it looked like this:

  • The broad S&P 500 index fell 0.2 percent
  • The Nasdaq index, which has heavy technology, fell 1.0 percent
  • The Dow Jones Industrial Average rose 0.2 percent

– The fight against inflation seems far-fetched. Regardless of the latest signs of slowing economic activity, and should inflation stall later this year, major central banks will struggle to confirm rate cuts in the market, senior strategist Ivelo Veselinov at Emso Asset Management tells Bloomberg.

Oslo Poor’s, which takes Easter off before Wall Street, had a half day on Wednesday. Here, heavyweights in oil and agriculture contributed to the main index’s decline by 0.5 percent.

Bank stocks tumbled

Among individual stocks, shares of pharmaceutical giant Johnson & Johnson rose more than four percent after news Tuesday that the company agreed to pay $8.9 billion to thousands of customers who have sued the company. The background to many of the lawsuits are allegations that the company’s baby powder caused cancer. The settlement may have been one of the largest of its kind in history, but it required approval from the authorities.

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Western Alliance regional bank fell more than 15 per cent from the start after a report that the ratio of secured deposits was 68 per cent at the end of March, down from 55 per cent two weeks earlier. The letter did not include any information about the bank’s total deposits, creating uncertainty about whether the bank was affected by a large-scale deposit flight in the wake of the Silicon Valley bank collapse.

In a new announcement, the bank wrote that it had deposits totaling $47.6 billion at the end of the quarter, compared to $53.6 billion at the start of the year. The stock recovered somewhat after the announcement, falling 12 percent.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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