US stocks fall as turmoil in regional banks resumes and Credit Suisse gets a lifeline

Traders work on the floor of the NYSE

US stocks dropped Thursday, with regional banking stocks still moving lower. 
Western Alliance Bancorp is the latest bank to receive warning about a potential credit rating downgrade. 
The Federal Reserve launched its latest rate-tightening campaign 1 year ago. 

US stocks fell Thursday, with regional bank stocks still under pressure on concerns about depositors while expectations about what route the Federal Reserve will take in interest rates next week continue to shift. 

The S&P 500’s gain for the year has been whittled to 1.4% after the index climbed by more than 8% last month. The index on Wednesday briefly erased its advance for 2023, with markets shaken up by a rout in bank stocks. 

In the wake of the Silicon Valley Bank failure, regional bank stocks largely fell again on Thursday. Western Alliance Bancorporation was lower after Fitch Ratings said it may downgrade the lender’s credit rating. First Republic fell after its credit rating was downgraded on Wednesday to junk status by S&P Global Ratings and Fitch Ratings, citing concerns that depositors will pull funds from the lender to protect uninsured money based on FDIC limits. PacWest stock lost ground, as well. Fitch on Wednesday placed the bank on a negative rating watch.   

Credit Suisse shares, meanwhile, recovered after crashing in the previous session. Shares rose after the Swiss National Bank offered the lender a $54 billion loan.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday: 

 S&P 500: 3,868.51, down 0.6%

Dow Jones Industrial Average: 31,646.47, down 0.72% (228.10 points)

Nasdaq Composite: 11,373.57, down 0.53%

“While we remain cautious on stocks, we don’t expect any kind of repeat of the 2008 financial crisis and we believe investors should be focused on how …read more

Source:: Businessinsider

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