Wall Street ended the session in negative territory, with concerns about US banks, particularly regional banking, once again weighing on investor sentiment.
The Dow Jones Industrial Average fell by 0.86% 33,127.94 points, while the Standard & Poor’s 500 (Standard & Poor’s 500) recorded a decrease of 0.72% to 4,061.36 points.
The Nasdaq Technology Index fell by 0.49% 11,966.40 points.
PacWest Bank, based in California and with strong ties to the technology industry, like Silicon Valley Bank, sank 50.62%, after confirming that it was in talks with several investors and studying strategic options for the future of the institution, including the possibility of selling.
In turn, the Western Alliance ended the day down 38.45%, after witnessing the suspension of securities trading several times during the day.
The bank denied reports that it was looking into the possibility of selling it.
These declines extended to the giants of the banking sector, with JPMorgan Chase down 2.05%, Wells Fargo down 4.99%, Goldman Sachs down 2.27%, and Morgan Stanley down 2.53%.
In the final stage of negotiations, the banking sector had yet to absorb the news that the Federal Agency responsible for guaranteeing deposits in the country intends to replenish its guarantee fund by exempting smaller banks, with assets of less than 10 billion US dollars, and increasing the amount required of major financial institutions, according to informed sources, citing Bloomberg.
Also notable was Apple shares, which fell 0.99%, moments before the company closed Big Technology’s quarterly “earnings season” in North America.
Finally, the day also served to absorb the latest trends in the North American labor market.
The number of jobless claims increased by 13,000 last week to a total of 242,000.
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