Stocks retreat as bank fears intensify
In the lead-up to Apple’s quarterly results, which are scheduled to be released after markets close, stock indexes fell on Thursday. Additional upheaval in the banking industry weighed on investor mood. The Dow Jones dropped 1%, while the Nasdaq slid 0.5%. The S&P 500 was down 0.8%.
With suspicions that PacWest may be on the verge of collapse, a trio of smaller banks, such as First Horizon, Western Alliance, and PacWest, were suffering significant losses. This spurred new worries about problems in the banking industry.
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On hearing that the local bank was considering strategic options, including a potential sale, PacWest Bancorp’s stock dropped more than 40%. Although it claimed there had been no unusual outflows of deposits, the bank acknowledged that it was considering all options.
While this was happening, big tech traded in a mixed bag ahead of Apple’s upcoming quarterly report. Many are eagerly awaiting a report regarding how iPhone sales have fared in the face of slowing global growth. The stock is now trading 1.1% lower
The US dollar trades mostly mixed
The US dollar Index records negligible increases of 0.06% as an aversion to risk sets in as a result of the turbulence in the US financial sector. After reaching an 11-month peak the day before, the GBP/USD moved in a tighter range on Thursday. The cable ended the day unchanged at 1.2576 and was up 0.09%.
After the European Central Bank slowed down the rate hikes, the EUR/USD gave back previous gains. Despite falling by 0.38%, the EUR/USD pair is still clinging to the 1.10 level.
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After the most recent RBA data, the Australian dollar recovered and closed 0.36% higher. Additionally, the Japanese yen rose 0.4% against the US dollar.
Gold hits record highs as oil stops diving
After three days, oil appears to have peaked, with crude prices falling to levels last seen in 2021. The OPEC+ production move increased the price of a barrel by almost $15 in early April.
After that came a round of selloffs that drove crude prices to 15-month lows. Oil has experienced a dramatic fall from grace in just one month.
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WTI ended trading on Thursday down barely 4 cents, or 0.06%, at $68.56 per barrel. This price settled in after losing a total of more than $8, or 11%, during the previous three trading sessions.
WTI 1D chart, source: tradingview.com
For the first time in four days, London-traded Brent for July delivery increased. The UK crude ended the day up a meager 17 cents, or 0.2%, at $72.50.
The most recent Fed announcement acted as gold’s rocket fuel. The price of gold for June delivery reached a record high of $2,082.80 before ending at $2,055.70, up $18.70 or 0.9%.
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