- US stocks were whiplashed on Thursday as investors digested fresh concerns of a US banking crisis.
- The S&P 500 rose as much as 2% before it gave back most of those gains, while the Dow erased nearly all of a 470 point gain.
- Treasury Secretary Janet Yellen said the US is prepared to take further actions to protect bank deposits if needed.
US stocks suffered severe whiplash on Thursday as investors continued to digest the Federal Reserve’s latest interest rate hike and fresh concerns of a US banking crisis.
The Fed hiked interest rates by 25 basis points on Wednesday, representing its 9th consecutive interest rate hike since it started the tightening policy in March 2022, and Fed Chairman Jerome Powell signaled that further interest rate hikes could be necessary.
Meanwhile, concerns of an ongoing US banking crisis were heightened on Thursday after Moody’s said there is a risk that the crisis could spillover into the broader economy.
“There is a risk that policymakers will be unable to curtail the current turmoil without longer-lasting and potentially severe repercussions within and beyond the banking sector,” Moody’s wrote.
The S&P 500 rose as much as 2% before it gave back most of those gains, while the Dow Jones erased nearly all of an intra-day 470 point gain.
Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:
Here’s what else happened today:
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 2.33% to $69.25 per barrel. Brent crude, oil’s international benchmark, dropped 1.89% to $75.24.
- Gold rose 2.59% to $2,000.00 per ounce.
- The yield on the 10-year Treasury sank six basis points to 3.39%.
- Bitcoin rose 2.97% to $27,431, while ether jumped 4.30% to $1,816.