Stocks are rising on Wall Street Monday as battered banks show more strength, at least for now. The S&P 500 was 0.6% higher in early trading Monday. The Dow and the Nasdaq composite also rose. Markets have been in turmoil following the second-and third-largest U.S. bank failures in history earlier this month. Investors have been hunting for what banks could be next to fall as the system creaks under the pressure of much higher interest rates. First Citizens' stock soared after saying it would buy most of Silicon Valley Bank, whose failure sparked the industry’s furor earlier this month.
New York authorities would be given expanded power to shut down illegal pot shops and levy fines of up to $200,000 under legislation proposed by Gov. Kathy Hochul. The measure introduced Wednesday is designed to protect the state’s fledgling legal recreational marijuana market. New York is trying to get its potentially massive adult legal market into high gear, with three shops opened so far in New York City, two in upstate New York and more planned. But legal operations are being undermined by a proliferation of unlicensed stores.
The failures of two U.S. banks this month meant losses for U.S. public-sector pension systems that invested in them. Experts don't see the holdings in Silicon Valley Bank and Signature Bank as especially risky for the funds, which provide retirement incomes for teachers, firefighters and other public workers. But there are worries that the funds have too many risky holdings. More aggressive investing is one way funds have narrowed funding gaps over the last decade. After years of benefit increases and funding contribution cuts in the early 2000s, funds were hit hard by the 2008 financial crisis.
Swiss President Alain Berset said banking giant UBS is acquiring its smaller rival Credit Suisse for almost $3.25 billion in an effort to avoid further market-shaking turmoil in global banking. The combination of the two biggest and best-known Swiss banks, each with storied histories dating back to the mid-19th century, amounts to a thunderclap for Switzerland’s reputation as a global financial center — leaving it on the cusp of having a single national champion in banking. While UBS is buying Credit Suisse, UBS officials said they plan to sell off parts of Credit Suisse, or reduce the size of the bank over the coming months and years.
Wall Street’s week of turmoil closed with drops for stocks. The S&P 500 fell 1.1% Friday, led by declines in First Republic and other banks. The Dow Jones Industrial Average and Nasdaq composite also pulled back. This week has been a whipsaw for global markets as concerns worsen about banks following the second- and third-largest U.S. bank failures in history. The fear is that the trouble for banks caused by fast-rising interest rates could drag the economy into a recession. Treasury yields sank again Friday in part on such fears, along with easing inflation expectations and falling confidence among U.S. households.
The Federal Reserves says cash-short banks have borrowed about $300 billion in emergency funding from the central bank in the past week. Nearly half the money — $143 billion — went to holding companies for the two major banks that failed over the past week, Silicon Valley Bank and Signature Bank, triggering widespread alarm in financial markets. An additional $148 billion in lending was provided through a longstanding program called the “discount window,” and amounted to a record level for that program.
Asian stock markets have tumbled after Wall Street sank as a plunge in Credit Suisse shares reignited worries about a possible bank crisis following the failure of two U.S. lenders. Shanghai, Tokyo, Hong Kong and Sydney all dropped, reversing Wednesday’s gains. Oil prices edged higher. Wall Street’s benchmark S&P 500 lost 0.7% after following a 30% plunge in Credit Suisse’s share price. That fueled jitters about the strength of global banks that are under strain from interest rate hikes to cool inflation. Chinese shares declined after government data showed the Chinese economy is recovering more slowly than expected following the lifting of anti-virus controls.
Fears about the world banking system spread to Europe as shares in the globally connected Swiss bank Credit Suisse plunged. The steep drop on Wednesday dragged down other major European lenders in the wake of bank failures in the United States. At one point, Credit Suisse shares lost more than a quarter of their value. The stock price hit a record low after the bank’s biggest shareholder — the Saudi National Bank — told news outlets that it would not invest more money into the Swiss lender. Credit Suisse was beset by problems long before the U.S. banks collapsed.
Homeownership is likely to remain a pipe dream for many Americans this spring homebuying season. The nation’s worst housing slump in nearly a decade stoked hope among prospective buyers that homes could be scooped up more easily and prices would come back to earth. But while home prices appear to have peaked last summer, they still ended 2022 higher than they were at the end of 2021 and buyers face sharply higher borrowing costs than a year ago. Still, it’s not all bad news. Nationally, there are more homes for sale now than a year ago and data shows sellers are more willing to lower their asking price.
Asian stock markets are higher after Wall Street stabilized following sharp declines for bank stocks and U.S. inflation edged lower. Shanghai, Tokyo, Hong Kong and Sydney advanced. Oil prices regained some of the previous day’s sharp losses. Wall Street’s benchmark S&P 500 index rose as bank stocks recovered some of their losses caused by worries customers might pull out deposits following the collapse of two U.S. lenders. Government data showed prices rose 6% over a year earlier in February, down from the previous month’s 6.4% but still far above the Federal Reserve’s 2% target. Investors had worried the Federal Reserve might respond to enduring upward pressure on prices by speeding up the pace of interest rate increases.
Some of the most breathtaking moves from a manic Monday reversed course.
Asian shares have fallen in early trading as investors around the world watch to see what's next following the second- and third-largest bank failures in U.S. history. Benchmarks declined across the region and oil prices also fell. U.S. futures turned higher. In Asia, direct exposure to the risks from the U.S. failures appeared slim, at least so far. Still share prices for Japanese banks were sharply lower. MUFG fell 6.3%, Mizuho sank 5.8% and Sumitomo Mitsui Financial Group's shares dropped 6.2%. On Wall Street, bank issues fell but some stocks rose on hopes the Federal Reserve will take it easier on raising interest rates.
The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring depositors at the failed financial institution that they would be able to access all of their money quickly. The announcement came amid fears that the factors that caused the Santa Clara, California-based bank to fail could spread, and only hours before trading began in Asia. Regulators had worked all weekend to try and come up with a buyer for the bank, which was the second largest bank failure in history. Those efforts appeared to have failed as of Sunday.
Oil giant Saudi Aramco says it earned $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company and drawing immediate criticism from activists. The monster profit by the firm, known formally as the Saudi Arabian Oil Co., came off the back of energy prices rising after Russia launched its war on Ukraine in February 2022. Sanctions have limited the sale of Moscow’s oil and natural gas in Western markets. That profit, however, comes amid growing international concerns over the burning of fossil fuels accelerating climate change. Amnesty International criticized Aramco's profit due to that.
What might it take to get President Joe Biden and Congress to reach a deal on raising the debt limit? According to several economists and a former White House official, the financial markets might need to crash first.
What might it take to get President Joe Biden and Congress to reach a deal on raising the debt limit? According to several economists and a former White House official, the financial markets might need to crash before lawmakers are forced to act. Every other time before, Congress has found agreement on the debt ceiling. The question now, in a period of ever-increasing political polarization, is whether today is different. Republicans and Democrats have been dancing around each other about the need to raise the government’s legal borrowing authority. That maneuvering could last for several more months until the last possible moment, when the federal government would hit a currently unknown “X-date” and be unable to pay its bills.
Fear rattled Wall Street Friday, and stocks tumbled on worries about what’s next to break under the weight of rising interest rates following the biggest U.S. bank failure in nearly 15 years. The S&P 500 fell 1.4%, capping its worst week since September. That’s despite a highly anticipated report showing pay raises are slowing and other signals investors want to see of cooling pressure on inflation. Some of the biggest drops were in the financial sector, which fell sharply for a second day. Regulators shut down Silicon Valley Bank amid a cash crunch, and worries rose about what other banks could be in trouble.
Asian stock markets are mixed after Wall Street steadied following a plunge on worries about more U.S. interest rate hikes. Shanghai and Seoul declined. Tokyo and Hong Kong advanced. Oil prices edged lower. Wall Street’s benchmark S&P 500 index recovered some of the previous day’s loss following Federal Reserve chair Jerome Powell’s warning rate that hikes might speed up because upward pressure on prices is stronger than expected. Investors worry the Fed and other central banks look increasingly likely to tip the global economy into at least a brief recession to extinguish stubborn inflation. U.S. inflation rose to 5.4% in January _ well above the Fed’s target of 2%.
Asian shares are mostly lower as investors fret that the Federal Reserve might raise interest rates faster if pressure stays high on inflation. Japan's benchmark Nikkei 225 rose slightly in morning trading, but shares sank in Sydney, Seoul, Hong Kong and Shanghai. Chinese shares sank after officials in Beijing announced plans for a regulatory shakeup. Oil prices were higher. Wall Street shuddered Tuesday after Fed Chairman Jerome Powell told lawmakers that the central bank would keep interest rates higher if need be to fight inflation. A Fed meeting later this month is expected to result in another rate hike.
Former U.S. Rep. Steve Buyer of Indiana has gone on trial on insider trading charges. He's accused of illegally garnering stock windfalls by exploiting his consulting clients’ corporate secrets years after he left Congress. Buyer's lawyers counter that he was a stock market buff who did his research, made some profitable trades and didn’t even know about his clients’ private plans when he made the purchases that came under prosecutors’ scrutiny. The Republican served in Congress from 1993 to 2011. He chaired the House Veterans’ Affairs committee for a time and served as one of the House prosecutors during former President Bill Clinton’s 1998 impeachment trial.
After starting as a niche corner of the finance world, ESG investing has since exploded to become a major force on Wall Street _ and the latest front in the nation’s cultural schism. To use an ESG approach is to consider a company’s performance on environmental and other measures, before deciding whether to invest in it. The industry says ESG helps make better decisions by highlighting companies that may be riskier than traditional investing guidelines alone would suggest. It could also help find better opportunities. To critics, it’s all just the latest example of the world trying to get woke.
Stocks tumbled to their worst day in two months Tuesday.
Wall Street closed another bumpy week with a mixed performance on Friday amid worries that inflation is not cooling as quickly or as smoothly as hoped.
Wall Street rose Monday as traders made their final moves ahead of a report that could show whether inflation is cooling in the right way or setting the market up for worse pain.
Stocks dropped Thursday following another mixed set of profit reports from companies, as rising expectations for interest rates keep up the pressure on Wall Street.