US stock futures fell Friday morning as markets capped an eventful week following Wednesday’s Federal Reserve interest rate decision and further pressure on the banking sector.
Futures on the S&P 500 (^GSPC) are down about 0.8%, while futures on the Dow Jones Industrial Average (^DJI) are down 335 points (1%). Contracts in the technology-focused Nasdaq Composite Index (^IXIC) also fell, down about 0.5%.
WTI crude (CL=F) fell about 4% in pre-market trading to about $67 a barrel, near its lowest level in almost two years. Brent crude (BZ=F) also fell 4% to just under $73 a barrel.
Oil pressure will take advantage of the current drop in oil prices, Energy Secretary Jennifer Granholm told lawmakers on Thursday that it could take years to replenish the nation’s Strategic Petroleum Reserve (SPR). comes after saying “it’s difficult”.
On Wednesday, the Fed raised interest rates by 25 basis points, raising the federal funds rate range to 4.75% to 5%. This was the highest since October 2007, suggesting that the aggressive rate hike campaign to curb inflation has diminished.
“The Committee anticipates that some additional policy tightening may be appropriate to achieve a sufficiently restrictive monetary policy stance to bring inflation back to 2% over time. . policy statementabolish the language of “continuous rate hikes” in interest rates.
Stocks ended Thursday’s volatile trading session higher as investors digested the Fed’s latest move.
Ryan Sweet, chief U.S. economist at Oxford Economics, wrote in a report Wednesday that “Chairman Powell has rejected the Fed’s argument that there is still a way to get a soft landing or inflation back on target without forcing the economy into recession. I persisted,” he said. “But the pressure on the banking system is narrowing that path.”
Sentiment in banks fell early on Friday as investor concerns over financial stability continue to rise following the stunning failure of a Silicon Valley bank that had ripple effects across the financial system.
Regional bank stocks including First Republic Bank (FRC), PacWest Bancorp (PACW), Western Alliance Bancorporation (WAL), Regions Financial (RF) and Zions Bancorporation (ZION) all fell.
Big bank stocks also fell, with Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C) and Goldman Sachs (GS) all in Friday’s market It fell in previous trading.
Shares of European bank operators Deutsche Bank (DB) and UBS (UBS) have fallen more than 10% and 6% respectively as Eurobank continues to feel the aftermath of the financial crisis. Bankruptcy of Credit Suisse.
according to ReutersDeutsche Bank’s credit default swaps, a form of insurance against defaults, jumped to a four-year high, fueling concerns about stability abroad.
The block (SQ) fell another 4% in pre-market trading on Friday after falling 15% on Thursday.
Hindenburg Research imposed charges Fraud against a company founded and led by billionaire Jack Dorsey. In response, Block said it plans to work with the SEC to “consider legal action against the untrue and misleading reports Hindenburg Research shared today about our Cash App business.” rice field.
In response to Hindenburg’s report, Citi analyst Peter Christiansen said, “We hope that Brock’s responses and counterarguments will be more detailed, and that ‘considering legal action’ alone will not be enough to invest in investors. It will not be possible to resolve the family’s concerns,” he said, reflecting the sentiments of shareholders.
Coinbase (COIN) fell another 2% after falling 14% on Thursday following the company’s disclosure of a wells notice from the SEC.
Netflix (NFLX), which led the S&P 500 on Thursday, calmed down in early market trading on Friday after surging more than 9%.
Alexandra is a Senior Reporter at Yahoo Finance. follow her on her twitter @alliecanal8193 Send an email to alexandra.canal@yahoofinance.com.
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