Last Update: May 05, 2023, 02:48 AM IST
Wall Street stocks tumbled on Thursday after another brutal selloff in regional banking stocks in the wake of four bank failures since early March.
The Dow Jones Industrial Average fell 0.9 percent to 33,127.74.
The broad-based S&P 500 fell 0.7 percent to 4,061.22, while the tech-rich Nasdaq Composite index dropped 0.5 percent to 11,966.40.
Analysts said the sharp downgrade by more banks is adding to recession worries as markets digest the latest interest rate hike from central banks.
“Financial stability concerns are not going to go away anytime soon,” said Edward Moya of OANDA.
He said demand will continue to fuel that the economy is headed for a more difficult recession than some expected.
Thursday’s losses came after the European Central Bank followed the Federal Reserve in raising interest rates by a quarter point.
Financial stocks suffered losses across the board, but the deepest declines were in mid-sized regional banks, whose assurances about their financial health fell flat.
Shares of PacWest Bancorp declined 50.6 percent, First Horizon 33.6 percent and Western Alliance Bancorp 38.5 percent.
Also hard-hit was entertainment conglomerate Paramount Global, which sank 28.4 per cent after disappointing results as it cut its dividend.
But shares of Kenview soared 22.3 percent in the market for health and beauty consumer business after the Johnson & Johnson spinoff raised $3.8 billion for J&J.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
