US Banking Stocks Continue to Take a Great Blow!


 The government's swift action succeeded in curbing the fall of the US stock market even further earlier in the week.

This follows the move announced on Monday morning (Asian session) that it will guarantee deposits at Silicon Valley Bank to protect the financial system from a wider crisis.

While the US President, Joe Biden tried to calm the US people by saying they need to have confidence that the banking system is safe.

Despite managing to calm the market, regional bank stocks remained under strong pressure, resulting in some trading in banking stocks being halted.

Among the worst affected was First Republic Bank which fell 61.83%, while Western Alliance Bancorp and PacWest Bancorp fell 47.06% and 21.05% respectively in the trading session of the New York session.

The three major indexes closed mixed, with the Dow Jones Industrial down 0.28% at 31,819.15, while the S&P 500 was down 0.15% at 3,855.77 and the Nasdaq was positive at 11,923.17 with an increase of 0.79%.

American Express, Goldman Sachs, and JPMorgan Chase were among the worst performers on the Dow Jones index amid heavy selling in financial stocks.

The decline in the US30 index also eased, showing it slightly higher at around 31,946 in the Asian session today.