PARIS (Reuters) – The New York Stock Exchange retreated in early trading on Friday with the banking compartment continuing to decline as the release of a mixed U.S. jobs report failed to paint a clear picture of what to do next. the Federal Reserve.
The Dow Jones index lost 0.16% to 32,199.54 points and the broader Standard & Poor’s 500 fell 0.36% to 3,904.29 points.
The Nasdaq Composite lost 0.74%, or 83.596 points, to 11,254.759.
The S&P banking index lost 1.41%, widening its losses the day before, the setbacks of SVB Financial raising fears of contagion to the entire sector, both in the United States and in Europe.
The troubled bank, which fell more than 60% on Thursday, is on hold and the group is looking to sell, according to CNBC.
The sudden collapse of SVB follows the announcement of a major capital increase intended to make up for a loss of 1.8 billion dollars, following the sale of a bond portfolio, formed with the rise in rates.
The financial world is worried, or at least wondering, about the vulnerability of small and large banks in the face of monetary tightening by central banks.
Concerning the Fed precisely, the futures contracts on the federal funds now include a greater probability that it will raise its rates by a quarter of a point on March 22, and not more than half a point, after the publication of the monthly employment report.
The US economy added jobs at a solid pace in February but monthly wage growth slowed and the unemployment rate rose, suggesting some easing in the labor market.
“The report tends to show that the economy is a bit more buoyant than previously thought and businesses are still eager to hire, which is not what the Fed wants to hear,” Sal Guatieri said. , senior economist at BMO Capital Markets.
“However, given other weaker elements, the decision to raise rates by 50 basis points, rather than 25 basis points, will likely be determined by the inflation release next week.”
Gap fell 4.49% after posting a bigger-than-expected fourth-quarter loss and Oracle lost 3.23% after the software company missed market forecasts on its quarterly revenue.
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(Laetitia Volga, edited by)
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