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HomeIndiaPanic is subsiding on Wall Street as regional bank stocks reboundNews...

Panic is subsiding on Wall Street as regional bank stocks reboundNews WAALI

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News Waali latest news updates.

New York, Mar 14 () After a few days of panic over the health of the US banking system, Wall Street appeared to be taking a deep breath on Tuesday, media reports said.

Regional bank stocks rebounded Tuesday morning after being pummeled in a Monday selloff fueled by a mix of contagion fears and a pile of short sellers who profit when stocks lose value, CNN reported.

Even after the federal government’s intervention on Sunday to back up deposits at two failed lenders, Silicon Valley Bank and Signature Bank, Wall Street had remained wary of smaller and medium-sized banks seen as having similar risks.

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The mood was calmer, even jubilant, on Tuesday, thanks in part to the latest inflation report, which showed price inflation falling for the eighth consecutive month.

First Republic Bank, a lender suspected of being the next domino to fall in a banking crisis, surged nearly 60 percent on Tuesday after falling by the same amount the day before. Western Alliance Bancorp stock rose more than 45 percent. PacWest Bancorp rose more than 50 percent after ending Monday down 20 percent, CNN reported.

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Ratings agency Moody’s has changed its outlook on the US banking system to “negative” from “stable” after the collapse of three major banks fueled fears of contagion, The Guardian reported.

Moody’s Investors Service said it was moving in the wake of three key bank failures in recent days.

In a report, Moody’s said the operating environment for US banks was “deteriorating rapidly”.

“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY ) and the failures of SVB and SNY,” Moody’s said, The Guardian reported.


(This story has not been edited by The Kashmir Monitor Staff and is auto-generated from a syndicated feed)