Stocks fall as worries about banks, possible recession flare

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Wall Street's week of turmoil is closing with sharp drops for stocks on Friday as worries worsen about the banking industry and fears rise that it could drag the economy into a recession.

The S&P 500 was 1.3 per cent lower in midday trading, cutting into its gain for the week. The Dow Jones Industrial Average was down 442 points, or 1.4 per cent, at 31,803, as of 11:30 a.m. Eastern time, while the Nasdaq composite was 1.1 per cent lower.

The two banks have different sets of issues challenging them, but the overriding fear is that the banking system may be cracking under the weight of the fastest set of hikes to interest rates in decades. Banks have borrowed nearly US$165 billion from the Federal Reserve over the last week in a sign of how much stress is in the system.

Since then, Wall Street has tried to root out banks with similar traits to Silicon Valley Bank, such as lots of depositors with more than the US$250,000 limit that's insured by the Federal Deposit Insurance Corp., or lots of tech startups and other highly connected people that can spread worries about a bank's strength quickly.

Some of the wildest action has been in the bond market, where yields have swung as traders drastically recalibrate bets for where the Fed will take rates.

 

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No shit wait till depression

They're crashing the economies on purpose before the 'Great Reset' comes in signalling the full New World Order.

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