Big ones banks as Wells Fargo and Bank of America were losing more than 4%, but the steepest falls were from banks regional companies facing pressure to consolidate as earnings prospects deteriorate.
Wall Street fell sharply on Tuesday with bank shares under pressure amid concerns about the sector’s prospects amid a weakening economy in USA.
By 11:25 AM (1525 GMT), the Dow Jones Industrial Index and the broader S&P 500 were each down 1.7% and the Nasdaq, a technology stock, was down 1.5%.
bank shares
Shares of PacWest Bancorp were down 31.9% 35% and Comerica fell 9.1%.
Both banks they increased the interest they pay to their clients in order to preserve their deposits, which has weakened their prospects. The banking sector is expected to come under stricter supervision by regulators after recent bankruptcies.
Market analysts also pointed to weakness in oil-linked stocks as crude prices fell sharply amid recession concerns.
(With information from AFP)
2023-05-02 18:22:14
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