Stocks fall on worries about banks, pain of higher rates

  • 📰 mercnews
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 68%

United States News News

United States United States Latest News,United States United States Headlines

Stocks are falling as worries flare about the banking system and the painful effects of high interest rates meant to drive down inflation. The S&P 500 was 0.7% lower Friday. It’s heading …

NEW YORK — Stocks are falling Friday as worries flare about the banking system and the painful effects of high interest rates meant to drive down inflation.

Some of the market’s sharpest drops were again coming from the financial industry, where stocks tanked for a second day. Such hikes can undercut inflation by slowing the economy, but they also drag down prices for stocks and other investments and raise the risk of a recession later on. “This is a warning sign that the liquidity is draining, and the most vulnerable areas are starting to show it, which tells me the rest of the economy is not too far behind,” Schutte said.

But the data also showed a slowdown from January’s jaw-dropping hiring rate. More importantly for markets, average hourly earnings for workers rose by 0.2% in February from January. The yield on the 10-year Treasury plunged to 3.73% from 3.91% late Thursday, a sharp move for the bond market. It helps set rates for mortgages and other important loans.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 88. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market Today: Dow Closes Lower, Nasdaq Gains After Powell's TestimonyBreaking: Silvergate Capital, one of the top crypto banks, is shutting down. It said it will repay all deposits. hoss_crypto HKCM1 Crypto... 'BANK' 🤣
Source: WSJ - 🏆 98. / 63 Read more »

Stock Market Today: Dow Drops 250 Points in Midday TradingThe four biggest U.S. banks lost $47 billion of market value today, part of a broad rout across financial stocks Maybe employees should be held personally accountable for these losses. 🤑
Source: WSJ - 🏆 98. / 63 Read more »