RT.com
17 Mar 2023, 23:44 GMT+10
US markets were down on Friday, to end the worst week for the sector in over a decade
Bank stocks led US markets lower on Friday as investors' concerns over the health of the financial sector continued to grow.
The Dow Jones Industrial Average was down over 400 points, or 1.3%, as of 16:10 GMT. The S&P 500 fell 1.15%, and the tech-heavy Nasdaq Composite slid 0.9%.
The slide was driven by financials, with First Republic Bank stock nosediving 20% in early trading after the bank suspended its dividend payout and analysts announced that it was facing a "dire" outlook. On Thursday, big US banks, including JPMorgan Chase and Morgan Stanley, threw a $30 billion lifeline to the troubled regional lender.
The banking sector's struggles worsened as SVB Financial Group announced on Friday it had filed for Chapter 11 bankruptcy protection in New York to seek buyers for its assets. The announcement came days after its former unit, Silicon Valley Bank, was shut down by US regulators.
"Deposits have fled from regional banks like First Republic into the big banks who are now bailing them out by putting the deposits back in. But it doesn't solve the problem," the chairman of Great Hill Capital, Thomas Hayes, told Reuters.
"Until you stop the deposit flight from regional banks into the systemically important banks that are too big to fail, it doesn't matter how much money you pour into the bucket," he added.
The news of the First Republic Bank rescue followed a 50-basis-point rate hike by the European Central Bank (ECB), which remained focused on combatting inflation despite the rising concerns about the region's banks.
Investors will now closely follow the US Federal Reserve's interest rate decision, which is due next week.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Shanghai Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Shanghai Sun.
More InformationPARIS, France: A strike by French air traffic controllers demanding improved working conditions caused significant disruptions during...
OMAHA, Nebraska: With Congress considering cuts totaling around US$1 trillion to Medicaid over the next decade, concerns are rising...
ROME, Italy: Quick thinking by emergency responders helped prevent greater devastation after a gas station explosion in southeastern...
WASHINGTON, D.C.: President Donald Trump is drawing praise from his core supporters after halting key arms shipments to Ukraine, a...
MOSCOW, Russia: This week, Russia became the first country to officially recognize the Taliban as the government of Afghanistan since...
CAIRO, Egypt: This week, both Hamas and Israel shared their views ahead of expected peace talks about a new U.S.-backed ceasefire plan....
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
Bengaluru (Karnataka) [India], July 7 (ANI): Karnataka Deputy Chief Minister DK Shivakumar on Monday said that the Greater Bengaluru...
New Delhi [India], July 7(ANI): The Directorate of Enforcement (ED), Jaipur Zonal Office, conducted search operations on Friday at...
New Delhi [India], July 7 (ANI): Delhi Environment Minister Manjinder Singh Sirsa has said that Khalistani extremist Gurpatwant Singh...
Mandi (Himachal Pradesh) [India], July 7 (ANI): Thunag in Himachal Pradesh's Mandi district is facing a severe water crisis after recent...