Investors Remain Concerned About Banking Crisis in Equities Market, New York

NEW YORK (dpa-AFX) – The recovery in the Dow Jones Industrial
from Thursday, losses will follow at the end of the week. The pre-market price fluctuations had already shown how unsettled investors remain despite all the measures taken to contain the crisis in the US regional banks. In addition, there is the long expiry date on the futures exchanges, which often causes prices to fidget.

The leading index Dow Jones Industrial fell a good half a percent to 32,029.18 points in early trade on Friday, and for the market-wide S&P 500 it was down 0.38 percent to 3945.29

points down. The Nasdaq 100 held up on the Nasdaq technology exchange better. It fluctuated around its previous day’s close and was last listed 0.11 percent up at 12,595.43 points.

In a “historic step,” as JPMorgan calls it, the troubled First Republic Bank had received support worth billions from the largest American financial institutions. The hesitant stabilization of the First Republic Bank papers of the previous days was dampened again on Friday. Your price dropped by a fifth. At a good $27, this is still well above Monday’s low of $17.53. SVB Financial, the parent company of Silicon Valley Bank – the cause of the current crisis – has meanwhile applied for bankruptcy protection under “Chapter 11” of US bankruptcy law.

Investors are eagerly awaiting how the US Federal Reserve will react to the crisis in the coming week. The day before, the monetary watchdogs in Europe had not been dissuaded from their anti-inflation course and had raised the key interest rate again significantly. Meanwhile, the experts at Credit Suisse expect the Fed to take a “restrictive pause”. The turnaround in interest rates will be briefly suspended, but further steps will be signaled – so their theory.

Financial stocks recorded larger losses. The shares of the big banks JPMorgan and Goldman Sachs
fell by around two and a half percent on the last places in the Dow Jones.

On the papers of the US pharmaceutical company Merck & Co
was weighed down by a study setback for a lung cancer drug. The shares lost around one percent.

Among the other individual values ​​were the papers of Deutsche Post competitor Fedex by a good 8 percent. The group raised its forecasts and also signaled cost reductions in order to counter low parcel volumes.

The steel company US Steel also impressed with his business prospects. The papers gained 1.75 percent.

And analysts also moved the courses. The shares of the entertainment company Warner Bros. Discovery up 1.6 percent, according to recommendations from Wolfe Research and Wells Fargo./mis/tih

 ISIN  US2605661048  US6311011026  US78378X1072

AXC0199 2023-03-17/15:07

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