PacWest sank 2% after being up earlier in the day but plunged another 52.5% in after-hours trading. Shares of PacWest Bancorp, Western Alliance Bancorp and other rivals fell again a day after trading was halted following steep price slides. Powell mentioned a survey that is yet to be released and will show how much loan officers at banks say they are tightening lending standards. Traders worry industry turmoil might prompt banks to reduce lending, worsening downward pressure on economic activity. On Thursday, Fed Chair Jerome Powell said he doesn't expect rate cuts that soon. Traders expect the Fed to start cutting rates as early as this year to prop up weakening economic growth.
Central banks have tried to reassure investors by pledging steps including additional lending if needed. Jitters have increased following three high-profile bank failures in the United States and one in Switzerland blamed on strain from higher interest rates. recession this year as the Fed and other central banks in Europe and Asia try to extinguish inflation that was near multi-decade highs. The Dow Jones Industrial Average lost 0.8% to 33,414.24 and the Nasdaq composite slipped 0.5% to 12,025.33. On Wall Street, the S&P 500 fell to 4,090.75. New Zealand and Southeast Asian markets also declined. The Shanghai Composite Index rose 0.5% to 3,340.28 and the Hang Seng in Hong Kong surged 1.1% to 19,924.15. “The key takeaway, in my view, is that we are likely at or very near the end of the rate hike cycle,” said Kristina Hooper of Invesco in a report. The Fed's statement dropped a reference to “additional policy firming” but stopped short of declaring an end to rate hikes. Wall Street's benchmark S&P 500 index fell 0.7% on Wednesday after the Fed announced a 0.25 percentage point increase in its lending rate. Markets: Asian stock markets were mixed Thursday after the Federal Reserve raised its benchmark lending rate again to cool inflation and said it isn't sure what may come next. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, May 4, 2023. Ahn Young-joon/AP Show More Show Less 2 of8 Currency traders watch monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S.
1 of8 A currency trader works near the screens showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S.
0 kommentar(er)
