"The continued downside in regional banks will be a problem for the market overall," said David Russell, vice president of market intelligence at TradeStation.
"In many ways the Fed's continued hawkish slant is giving short sellers a license to kill the banks, particularly the regional banks.", also known as Wall Street's fear gauge, rose to 21 points to touch its highest since late March.a pause in its policy tightening, giving officials time to assess the recent bank failures, U.S. debt ceiling situation and sticky inflation.
However, U.S. stocks dropped on Wednesday after Chair Jerome Powell said that it was too soon to say with certainty that the rate-hike cycle was over as inflation remains the chief concern. U.S. interest rate futures are factoring in a 62% chance of rate cuts starting as soon as July, according to CME Group's FedWatch Tool.as the labor market gradually softens amid higher interest rates, which are cooling demand in the economy.shares fell 1%. The iPhone maker is set to report quarterly results after the closing bell.