Wall Street falls and the fear index soars on renewed fear in the banking sector

Wall Street falls and the fear index soars on renewed fear in the banking sector

The fear index had its biggest daily rise in almost two months. In turn, the main indices fell while the shares of the PacWest Bancorp bank lost 24.3% and those of Comerica fell 12.5%.

Wall Street falls this Tuesday with bank shares under pressureamid concerns about the prospects for the sector in a context of weakening of the United States economy. In turn, the fear index had its highest daily rise in almost two months.

Thus, the industrial index Dow Jones fell 1.3%the expanded S&P 500 lost 1.3% and the nasdaqof technological values, yielded 1.1%.

big banks like Wells Fargo and Bank of America lost more than 4%but the steepest falls were from regional banks facing pressure to consolidate as earnings prospects worsen.

bank shares PacWest Bancorp lost 24.3% and Comerica fell 12.5%.

Both banks increased the interest they pay to their clients in order to preserve their deposits, which weakened their prospects. The banking sector is expected to come under stricter supervision by regulators after recent bankruptcies.

Market analysts also pointed out weakness in oil-linked stocksas crude oil prices fell sharply amid recession concerns.

“The VIX volatility index rises due to the uncertainty derived from the publication of the decision on the interest rate that the Federal Reserve will take tomorrow”Nino Di Russo, director of OnLineTradingCollege.org, explained to ANSA.

Finally, the Fed will announce an interest rate decision on Wednesday afternoonand then President Jerome Powell will answer questions from journalists at a press conference.

Source: Ambito

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