U.S. financial markets struggle as bank worries spread to Europe

NEW YORK —

Wall Street’s harsh spotlight has intensified across the banking industry recently on worries about what may crack next following the second- and third-largest bank failures in U.S. history last week. Stocks of U.S. banks tumbled again Wednesday after enjoying a brief, one-day respite on Tuesday. Some of this week’s wildest action has been in the bond market, where traders are rushing to guess what all the chaos will mean for future Fed action. On one hand, stress in the financial system could push the Fed to hold off on hiking rates again at its meeting next week, or at least refrain from the larger rate hike it has been signaling.

Other data showed that U.S. spending at retailers fell by more than expected last month, though spending in prior months was revised up. Manufacturing in New York state, meanwhile, is weakening by much more than forecast. Such data could raise worries about a recession on the horizon, but they may also take some pressure off inflation in the near term.

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US stock fall as bank worries spread to Europe; Dow down 500Stocks are tumbling on Wall Street Wednesday as worries about the strength of banks worsen on both sides of the Atlantic Ocean. The S&P 500 was 1.4% lower in early trading, while markets in Europe slumped even further as shares of Switzerland’s Credit Suisse tumbled to a record low. Another fiasco caused by deregulation under the Trump administration. Meanwhile in the UK, PM Sunak lifted a cap on bankers ' bonuses. Time for Swiss and European governments to step in to shore the banks up and go after the CEOs who recklessly use other people's money in speculative projects to make money for themselves and their clients.
Source: AP - 🏆 728. / 51 Read more »