US Stocks End Lower As Banking Shares Resume Sell-off

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2023-03-18 HKT 05:29

Share this story


  • All three major Wall Street indexes ended lower. File photo: AFP

    All three major Wall Street indexes ended lower. File photo: AFP

US stocks ended lower on Friday as banking shares resumed their selloff, with embattled First Republic Bank closing down 33 percent despite a $30 billion rescue package unveiled on Thursday.

The Dow Jones ended 1.2 percent lower at 31,861, the S&P 500 fell 1.1 percent to 3,916, and the Nasdaq declined 0.7 percent to end at 11,630.

The collapse of Silicon Valley Bank (SVB) last weekend triggered an unruly week of trading that spread far beyond the banks, impacting everything from bond yields to oil, according to FHN Financial's Christopher Low.

"The volatility we saw this week was just remarkable," he said in an interview. "Given that kind of an environment, it's not at all surprising that people took some chips off the table before the weekend."

First Republic's stock plunged on Friday after it announced it was suspending its dividend amid ongoing concerns about its long-term financial health.

The San Francisco-headquartered bank's shares ended down more than 70 percent for the week, despite rallying on Thursday after 11 of America's biggest banks announced a relief package for the lender.

First Republic's woes capped another tumultuous day for regional banks amid lingering contagion fears in the wake of SVB's collapse.

Shares of PacWest Bancorp ended the day down almost 19 percent, while those of KeyCorp fell more than six percent on Friday.

Large banks too were hit, with Bank of America and Wells Fargo both losing around four percent.

Analysts and traders are now keenly eyeing next week's monetary policy decision by the US Federal Reserve.

The US central bank will announce on Wednesday whether or not it will continue hiking interest rates to tackle inflation or halt them amid the ongoing concerns about the banking sector. (AFP)


US Stocks Rise On Hopes Of Pause In Rate Increases

Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more

China's Financial Risks 'controllable': Regulators

The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more

Banks Cut Yuan Deposit Rates, Could Boost Consumption

China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more

Cheese And Wine Put EU, Australia Deal In Peril

Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more

US Stocks End Mixed As Tech Shares Are Sold Off

Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more

Amazon 'plans Prime Video Streaming Service With Ads' is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more