2023-04-25 23:31:47
Wall Street is shaking again. The New York Stock Exchange had a bad day on Tuesday, the worst session in more than a month, weighed down by the banks, with fears about the health of First Republic. The Californian bank announced that its net deposits plunged 41% in the first quarter of 2023 despite the 30 billion injected by 11 large establishments last month to prevent First Republic from going bankrupt like Silicon Valley Bank.
First Republic’s stock plummeted nearly 50% on Tuesday, dragging the entire industry down with it. “It was a bit scary,” acknowledged Steve Sosnick, chief strategist at Interactive Brokers, observing the rout in the shares of other regional banks like PacWest (-8.92%) or Western Alliance (-5.65%) . The major banking establishments also took the water, losing between 2% and 3%, from Bank of America to JPMorgan via Citigroup.
Worst day in a month
The Dow Jones index fell 1.02% to 33,530.83 points, the tech-heavy Nasdaq lost 1.98% to 11,799.16 points and the S&P 500 dropped 1.58% to 4,071, 63 dots. The VIX index, known as the “fear index”, which measures market volatility, jumped 15%.
“It must be said that this is the first day since March 22 where the major indices have fallen by more than 1%”, put Sosnick into perspective. For Edward Moya, analyst for Oanda, “US equities softened between mixed corporate results, banking jitters and the news that President Joe Biden will run for re-election”.
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