It would to be the third major US bank to fail in two months. First Republic Bank’s stock roughly halved on Tuesday after it gave details about how much in deposits its customers have yanked. First Republic tumbled again Friday and is down 97.1 per cent for the year so far.
On Wall Street on Friday, Exxon Mobil did some of the market’s heavier lifting after it rose 1.3 per cent. It reported stronger profit and revenue for the latest quarter than forecast.
Intel gained 4 per cent after reporting a milder loss than expected and stronger revenue for the latest quarter. Mondelez International, the food giant behind Oreo and Ritz, rose 3.9 per cent after topping Wall Street’s estimates.
The bank has been caught in the fallout from the March failure of Silicon Valley Bank.Credit: Bloomberg
They helped to offset a 4 per cent drop for Amazon, which weighed heavily on the market despite reporting stronger profit and revenue for the latest quarter than expected. Analysts pointed to a slowdown in revenue growth at its AWS cloud computing business.
Snap tumbled 17 per cent after its revenue for the latest quarter fell short of forecasts. Pinterest also fell sharply, down 15.7 per cent, despite reporting stronger results than expected. Analysts pointed to its growth forecast for the current quarter, which looked more tepid than some expected.
Wall Street has focused heavily on what CEOs are saying about their upcoming trends given how much uncertainty is ahead about where the economy and interest rates are heading.
Loading
A report on Friday said the inflation measure that the Fed prefers to use came in close to expectations for March, but it remains well above the target.
The Fed has raised its key overnight interest rate to its highest level since 2007, up from its record low, following a barrage of hikes since early last year. Together, they’ve already slowed the economy’s growth down to an estimated 1.1 per cent annual rate at the start of this year.
The Federal Reserve released a report on Friday blaming the failure of Silicon Valley Bank on a combination of poor bank management, weakened regulations and lax government supervision. That bank’s collapse is what sparked the industry’s turmoil last month.
In the bond market, the yield on the 10-year Treasury fell to 3.43 per cent from 3.52 per cent late Thursday. It helps set rates for mortgages and other important loans. The two-year yield, which more closely tracks expectations for the Fed, fell to 4.02 per cent from 4.08 per cent.
With AP, Reuters
The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.
