Dusseldorf, New York Rising concerns about the US banking sector weighed on Wall Street on Thursday. The Dow Jones index of standard values lost more than one percent to 33,067 points. Due to the renewed loss, the Dow Jones has slipped into the red in the course of the year to date and is around 0.3 percent lower than at the beginning of the year. The broader S&P 500 fell 0.7 percent to 4,062 points, while the Nasdaq index fell 0.4 percent to 11,974 points.
Regional banks and above all Pacwest, which is looking for strategic options in discussions with investors, were once again caught in the crossfire. In doing so, she apparently wants to avoid the fate of the First Republic, which went to JP Morgan in an emergency sale, and other institutions caught up by the US supervisory authorities. Shares fell about 42 percent to a record low of $3.55.
Western Alliance stocks were also down about 11 percent, Keycorp fell more than 7 percent and Valley National fell 3.3 percent.
“Pacwest is further evidence that the US banking crisis is not over,” said Stuart Cole, chief macroeconomist at Equiti Capital. “They seem to be struggling and I’d be very surprised if it wasn’t for the same reasons as before (…) the market is circling all these US regional banks like a vulture and seeing which one gets picked next.” Insiders according to a sale of Pacwest is also under discussion.
In addition, investors were busy gleaning the US Federal Reserve’s decision. The Federal Reserve raised interest rates by a quarter of a percentage point to the new range of 5.0 to 5.25 percent on Wednesday, while signaling a possible pause. On the other hand, Fed Chair Jerome Powell put a damper on hopes of interest rate cuts in the near future.
Look at other individual values:
Paramount: The media company’s shares fell 21 percent. The US TV and film company performed worse in the first quarter than the market had expected. The group gained 4.1 million subscribers to the Paramount+ streaming service, compared to 9.9 million in the previous quarter. On an adjusted basis, Paramount earned nine cents a share, while analysts had expected 17 cents.
Financial expert Saurenz on interest rate policy: “The drop in the stock markets is currently high”
Shopify: The e-commerce platform reported better-than-expected quarterly results and also announced the sale of parts of its fulfillment business and logistics division. The stock gained 26 percent.
Peloton: The fitness equipment maker’s stock slipped 16 percent. The company reported an unexpectedly high quarterly loss.
Qualcomm: The chip manufacturer had published a weaker-than-expected forecast for the current quarter. The reason for this was the declining smartphone sales. Qualcomm reported revenue for its most recent quarter that beat expectations and earnings that matched Wall Street estimates. The stock fell 6 percent.
Shake Shack: The stock rose 13 percent. The company had reported a lower-than-expected quarterly loss. Turnover and sales in restaurants also exceeded forecasts.
tripadvisor: The company’s adjusted quarterly profit fell short of analysts’ forecasts, despite the online travel site operator reporting better-than-expected earnings. The stock slipped 6.4 percent.
SolarEdge: The paper climbed eleven percent. The solar products maker reported better-than-expected results and sales. The company explained that the problems in the supply chain had gradually improved.
Arconic: The paper rose 27.6 percent to $ 28.79. The Industrial parts maker has agreed to be acquired by private equity firm Apollo Global for $30 a share in cash.
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