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The Dow Jones New York Stock Exchange closed more than 300 points lower on Friday (March 10) as investors worried about the state of the US banking sector. It has ordered the closure of Silicon Valley Bank (SVB), a subsidiary of SVB Financial Group, following financial difficulties.
The Dow Jones Industrial Average closed at 31,909.64 points, down 345.22 points, or -1.07%; the S&P 500 closed at 3,861.59 points, down 56.73 points, or -1.45%, and the Nasdaq closed at 11,138.89, down 199.47 points, or -1.76%.
The Dow closed down for a fourth day in a row and its longest since December. 2022
in this week The Dow fell 4.4%, the S&P 500 shed 4.5% and the Nasdaq shed 4.7%.
The Federal Deposit Insurance Corporation (FDIC) has shut down SVB to protect depositors. While the SVB crisis has put pressure on bank stocks around the world.
SVB was unable to raise its balance sheet through its IPO on Wednesday, March 8, the same day Silvergate announced. Capital said it would cease operations of its Silver Gate Bank subsidiary. After heavy losses from the bankruptcy of cryptocurrency trading firm FTX,
The KBW, banking and financial sectors of the S&P500 index faced pressure throughout the day.
Markets fell after being initially supported by slowing releases of US jobs data. According to the US Department of Labor, Non-farm payrolls rose by 311,000 in February. That was above analysts’ expectations of 225,000, but slowed from 504,000 in January.
The unemployment rate rose to 3.6 percent, above analysts’ expectations of 3.4 percent.
In addition, workers’ average hourly wages rose 0.2 percent month-on-month. This was below analysts’ expectations of 0.4% and a 4.6% increase year over year. This was below analysts’ expectations of 4.8%.
The slowdown in employment data has helped to alleviate concerns that The Fed may raise interest rates by 0.50% at its meeting later this month.
For individual stocks that fell, such as Gap Inc., tumbled after revealing a bigger-than-expected fourth-quarter loss and lower-than-expected full-year earnings outlook.
Oracle shares slump after third-quarter earnings forecasts beat expectations
Source: InfoQuest news agency