© Reuters.
NEW YORK (dpa-AFX) – The recovery in the industrial on Thursday will initially be followed by losses again 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 by a good half a percent to 32,029.18 points in early trading on Friday, and the market-wide index fell by 0.38 percent to 3945.29
points down. It fared better on the Nasdaq technology exchange. 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 (NYSE:) calls it, the troubled company had First Republic Bank (NYSE:) received billions in support from America’s largest 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 (NASDAQ:), the parent company of Silicon Valley Bank – the cause of the current crisis – has since 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. The experts expect the Fed to Swiss credit (SIX:) meanwhile a “restrictive break”. 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 (NYSE:) fell by around two and a half percent each at the bottom of the Dow Jones.
A study setback for a lung cancer drug weighed on the papers of the US pharmaceutical company Merck (ETR:) & Co. The shares lost around one percent.
Among the other individual values, the papers of Deutsche Post competitor Fedex (NYSE:) increased by a good 8 percent. The group raised its forecasts and also signaled cost reductions in order to counter low parcel volumes.
Steel group US Steel (NYSE:) also impressed with its business outlook. The papers gained 1.75 percent.
And analysts also moved the courses. Shares of entertainment giant Warner Bros. Discovery (NASDAQ:) rose 1.6 percent on recommendations from Wolfe Research and Wells Fargo (NYSE:).
