new York Solid business figures from large corporations supported the US stock exchanges on Wednesday. On the other hand, the ongoing fall in the price of the First Republic Bank caused nervousness, fueling concerns about the stability of the US banking sector. The US leading index Dow Jones lost 0.7 percent to 33,301 points. The broad S&P 500 lost 0.4 percent to 4055 points. The tech-heavy Nasdaq, on the other hand, rose 0.5 percent to 11,854 jobs.
In the financial sector, the tremors continued around the ailing regional bank First Republic. Shares fell another 30 percent to $5.69 as deposits plummeted. In the meantime they had dropped to $4.77. The market value fell below the one billion dollar mark for the first time.
According to the TV broadcaster CNBC, the US government is not ready to help the lender. The bank itself is evaluating several options, such as selling assets or creating a bad bank, an insider told Reuters.
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Meanwhile, the dollar came under pressure after recent gains. The dollar index, which measures the value of the greenback against other major currencies, fell 0.3 percent to 101.46 points. In return, the euro gained 0.6 percent to $1.1036.
The dispute over raising the debt ceiling in the US made investors on the futures markets increasingly nervous. The cost of insuring against a US default rose to its highest level since 2011. Insuring a $10 million package of US bonds against default rose to $62,000, according to data from S&P Global Market Intelligence. This is more than double the level at the beginning of the year.
Continued fears of a recession weighed on oil prices. Brent crude oil from the North Sea fell by one percent to $79.95 per barrel (159 liters). The price of the light US grade WTI fell 0.8 percent to $76.48 a barrel.
Look at other individual values:
Boeing: Boeing’s revenue surged, boosting the planemaker’s shares by as much as 3.8 percent. In the end, an increase of 0.4 percent remained.
Visas: The company earned more than expected for the quarter. However, the stock fell slightly by 0.63 percent.
Microsoft: Sustained high demand for cloud offerings had brought Microsoft surprisingly strong quarterly results and drove the shares by 7.2 percent to their highest level in twelve months.
Activision: The mega takeover of the video game maker Activision is blocked by the British antitrust authorities. Activision shares fell 11.4 percent. The business figures of the Facebook mother were expected after the US stock market closed.
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