NEW YORK — Wall Street’s week of chaos is closing with sharp drops for stocks on Friday as concerns intensify about the banking market and fears increase that it might drag the economy into a economiccrisis.
The S&P 500 was 0.9% lower in afternoon trading, cutting into its gain for the week. The Dow Jones Industrial Average was down 332 points, or 1%, at 31,911, as of 1: 18 p.m. Eastern time, while the Nasdaq composite was 0.6% lower.
This week hasactually been a whipsaw for markets around the world as concerns increase following the second- and third-largest U.S. bank failures in history. Just a day earlier, markets rallied in relief after 2 banks on both sides of the Atlantic tapped into 10s of billions of dollars of money to strengthen their financialresources.
But on Friday, some of the hope was cleaning out, and the set were back to falling. In Switzerland, Credit Suisse shares dropped 8%. On Wall Street, shares of First Republic Bank sank 26.7% and were on their method to a 69% plunge for the week.
The 2 banks have various sets of concerns tough them, however the bypassing worry is that the banking system might be splitting under the weight of the fastest set of walkings to interest rates in years.
Analysts haveactually been fast to state the existing turmoil for banks looks noplace near as bad as the 2007-08 monetary crisis that destroyed the international economy. But the problems still feed into issues about a economiccrisis since issues for banks might imply issues for smallersized and mid-sized business getting the loans they requirement to grow.
In “the greatest photo: giventhat 1870 there haveactually been 14 huge world economicdownturns, all driven by wars, pandemics & banking crises,” financialinvestment strategist Michael Hartnett composed in a BofA Global Research report.
Banks haveactually obtained almost $165 billion from the Federal Reserve over the last week in a indication of how muc