Bank Drama Rages On; Apple Climbs in Late Trading: Markets Wrap
- PacWest, Western Alliance, First Horizon lead rout in lenders
- Fed swaps point to a rate cut by July, or maybe even June
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A rout in regional banks roiled markets, with anxiety about the next financial shoe to drop making traders boost their bets on Federal Reserve rate cuts. Apple Inc. rose in late hours after reporting earnings.
Another unsettling round of trading halts in the financial industry hit Western Alliance Bancorp and PacWest Bancorp this time amid losses that topped 60% for each stock. The rout engulfed several other lenders — big and small — with First Horizon Corp. down over 30% after its merger with Toronto-Dominion Bank was scrapped. A probe into Goldman Sachs Group Inc.’s role in Silicon Valley Bank’s deal also weighed on sentiment.