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%.
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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.