Stocks Slide as Bank Woes Counteract Tech Earnings: Markets Wrap
- First Republic said to face potential curbs on Fed borrowing
- Meta joins Alphabet, Microsoft in upbeat big-tech earnings
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US stocks ended lower as fresh concerns about the health of American regional lenders dragged down bank shares, even as big-tech earnings helped support broader sentiment.
The S&P 500 retreated 0.4% as First Republic Bank’s woes deepened Wednesday. The US regional bank plunged 30% in another volatile session after it was said to face potential curbs on borrowing from the Federal Reserve. Treasuries fell after an auction, with US lawmakers expected to vote on a debt ceiling bill in the early evening. Meanwhile, PacWest Bancorp offered a glimmer of hope that First Republic doesn’t portend trouble for the broader sector. Its shares rose 7.5% amid signs of recovery in its deposit levels.