U.S. stocks slipped into trading on Monday afternoon, as the loss of major banks dragged the S&P 500 and Dow Jones Industrial Average to higher prices they set at the end of last week.
The S&P 500 was down 0.6%, up from 12:12 p.m. Eastern Time. The Dow Jones Industrial Average was down 107 points, or 0.3%, to 32,965, while the Nasdaq index was down 1.1%.
Financial stocks have fallen into another major market losses amid concerns over how much pain the major banks will take following the hedge trade created by the US hedge fund. Shares of energy producers were also weak after the price of crude oil on the edge has plummeted. Technology stocks have also fallen sharply as China has announced more tax breaks to strengthen its chip industry. Facebook’s gains and other heavyweight markets have helped reduce the S&P 500 losses.
Most of Wall Street shares fell, while Treasury yields rose slightly. The widespread fear in the stock market has risen by 12%, but the VIX index, which shows how insecure traders are preparing for the S&P 500, remains close to its lowest level since last year’s catastrophic markets.
“It’s high, which shows that people are nervous, but not nervous,” said Tom Martin, chief executive officer of Globalt Investments.
The movement marks the recent decline of Wall Street, which has been rising sharply in a series of stops and startups. Market support has been rising in anticipation that the charged economic recovery is underway due to the Covid-19 vaccine, huge spending by the US government and ongoing low prices from the Federal Reserve. Simultaneous stock exchanges, however, are worrying about future inflation and possibly even lower prices in the market.
Several key economic reports have been prepared for this week, which could help determine whether stocks are worth the high prices reached. Among those in charge is a job report on Friday, in which economists expect to see a sharp rise in employment.
On Wednesday, President Joe Biden will also provide details on his proposal to rebuild roads, bridges and other infrastructure. Shares of immature producers met recently with rising expectations for infrastructure use by Washington, although many Presidential executives have failed to make it happen.
On Monday, however, market visibility was heavily focused on financial institutions after Japanese bank Nomura Holdings and Swiss bank Credit Suisse said they were facing significant losses due to their large client interaction, although the exact size is still unclear.
Nomura estimates that the lawsuit against her client could be worth $ 2 billion.
Credit Suisse said “and many other banks” came out of their jobs with the most important fund based in the U.S., which failed to be “sidelined” last week. A call in the ring occurs when the seller tells the client to deposit money after he has borrowed money to make a trade. No Credit Suisse and Nomura have named the client, but news reports identified him as New York-based Archegos Capital Management.
Shares of Credit Suisse and Nomura fell at least 16% in their home countries, and US banks were caught in a downward spiral as investors questioned whether the miserable jobs would remain isolated or could have far-reaching effects on the system.
“This is an example of a scale you don’t see,” Martin said. “We all know there’s a fair amount of debt out there, but we don’t know how much of that is there.”
Morgan Stanley fell 3.5%, while stocks across the S&P 500 lost 1.2% of the biggest losses among the 11 sectors that formed the index.
S&P 500’s energy stocks fell by 1.3% as US crude oil prices dropped slightly to $ 60.96 per barrel. Brent crude, the international standard, lost 0.1% to $ 64.35 per barrel.
The winning side was Boeing, a 2.4% increase after Southwest Airlines said it would order 100 737 MAX flights. Regulators in the United States and abroad have removed the aircraft model to resume flight, after it stabilized worldwide in 2019 after two crashes that killed 346 people.
The 10-year yield on the Treasury increased to 1.68% from 1.66% by the end of Friday.
In European stock markets, the German DAX returned 0.5%, while the French CAC 40 increased 0.5%. The FTSE 100 in London slipped by 0.1%.
In Asia, Japan’s Nikkei 225 was up 0.7%, South Korea’s Kospi was down 0.2% and Hong Kong’s Hang Seng was almost flat. Shares in Shanghai increased by 0.5%.