Wall Street falls after ECB raises interest amid turmoil – 03/16/2023 – Market

Wall Street falls after ECB raises interest amid turmoil – 03/16/2023 – Market


Wall Street’s main indexes fell on Thursday (16) after the ECB (European Central Bank) raised its main interest rate, despite concerns about a global banking crisis, fomenting fears that the Fed (Federal Reserve, bank US central bank) may also tighten monetary policy for longer.

The ECB increased by 50 basis points on Thursday, continuing its fight against inflation despite the turmoil in financial markets caused by the collapse of SVB (Silicon Valley Bank) and Signature Bank. .

Meanwhile, First Republic Bank shares fell 29.8% after a Bloomberg News report said the regional lender is exploring a sale, among other options.

The KBW Regional Banking Index was down 1.6%, while the S&P 500 Banking Index was down 1.2%.

Large US banks such as JPMorgan Chase & Co, Citigroup and Bank of America Corp also fell between 0.3% and 1.0%.

US-listed shares of Credit Suisse, however, rose 0.5% after the bank secured a credit line of up to $54 billion (R$286 billion) from Switzerland’s central bank to bolster liquidity and consumer confidence. investors.

Data showed the number of Americans filing new jobless claims fell more than expected last week, pointing to continued strength in the job market, which may persuade the Fed to keep raising rates.

Money markets are still pricing in a 25 basis point rate hike by the Fed in March. .

At 11:45 am (Brasília time), the S&P 500 index lost 0.33%, to 3,879.00 points, while the Dow Jones fell 0.30%, to 31,778.98 points. The Nasdaq Composite technology index fell 0.06% to 11,427.01 points



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