Losses in US stocks

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Narrow published a weekly minus. Overall, the S&P 500 lost 1.10 percent to 3916.64 points. The tech-heavy Nasdaq 100 fell 0.49 percent to 12,519.88 points.

The fact that the price of First Republic Bank has fallen by almost a third shows how indecisive investors are despite all the measures taken at US regional banks to contain the crisis. Thursday’s stability turned into a flash in the pan, thanks to billions of dollars in support from the biggest US financial institutions. In addition, SVB Financial, the parent company of Silicon Valley Bank, which was the cause of the current crisis, applied for creditor protection under Section 11 of the US bankruptcy law.

Financial stocks were generally under pressure before the weekend: JPMorgan and Goldman Sachs were among the biggest losers in the Dow, with discounts of 3.8 percent and 3.7 percent. Bank of America, Wells Fargo and Citigroup also suffered significant losses.

Investors are eagerly awaiting how the US Federal Reserve will react to the crisis next week. Euro-currency savers did not let them be deterred from the path of fighting inflation on Thursday and again increased the key interest rate significantly. Meanwhile, Credit Suisse experts expect a “restrictive pause” from the Fed. The reversal in interest rates will be suspended for a short time, but more steps will be signaled – so are their theories.

“The Fed needs to fix the problem again,” commented Konstantin Oldenburger, an analyst at broker CMC Markets. According to him, rate cuts will not be the right way to regain investor confidence, as some investors hoped. Because then there may be speculation that “there are more problems than previously known”. Oldenburger relies on the Fed’s “carrot and stick mix” to calm the market and get back to the real agenda, the fight against inflation.

A research regression on a lung cancer drug hit the newspapers of the US pharmaceutical company Merck & Co on Friday. Shares fell three percent. In contrast, Deutsche Post rival Fedex’s papers rose eight percent. The group upgraded its forecasts to accommodate lower parcel volumes and also signaled cost cuts.

Analyst comments have also moved to courses. Entertainment group Warner Bros. Shares of Discovery rose 1.3 percent on recommendations from Wolfe Research and Wells Fargo.

The euro continued its recent recovery and was last traded at $1,0662 in New York. The European Central Bank (ECB) had set the reference rate at 1.0623 (Thursday: 1.0595) dollars, thus costing the dollar 0.9414 (0.9438) euros.

US government bonds are in demand again after the previous day’s weakness. The 10-year bond futures contract (T-Note future) rose 1.31 percent to 115.69 points, lowering the 10-year government bond yield to 3.41%.

(SDA)

Source :Blick