US Federal Reserve Chair Jerome Powell said that if the economy proceeds as policymakers expect, there won't be a case for interest rate cuts later this year as projected by markets. US Treasury Secretary Janet Yellen said that the she was not considering a broad increase in bank deposit insurance. In response, the KBW Regional Bank index fell by 5.3%. Shares of First Republic Bank slid 15.5% amid worries that it may need to downsize or seek government support. Pacific Western Bank (-17.1%)...
US Federal Reserve Chair Jerome Powell said that if the economy proceeds as policymakers expect, there won't be a case for interest rate cuts later this year as projected by markets. US Treasury Secretary Janet Yellen said that the she was not considering a broad increase in bank deposit insurance. In response, the KBW Regional Bank index fell by 5.3%. Shares of First Republic Bank slid 15.5% amid worries that it may need to downsize or seek government support. Pacific Western Bank (-17.1%) announced it had raised US$1.4 billion from investment firm Atlas SP Partners. Shares of Bank of America (-3.3%), JPMorgan Chase (-2.6%) and Wells Fargo (-3.3%) all fell. Nike shares slid 4.9% after the sports apparel maker raised its full-year revenue outlook but warned of margin pressures. At the close of trade, the Dow Jones index fell by 530.5 points or 1.6%. The S&P 500 index lost 1.7% and the Nasdaq index shed 190 points or 1.6%.
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