Major US stock markets opened mostly lower on Friday amid news on First Republic Bank, SVB Financial, and Credit Suisse. The latest crisis in the sector, albeit with different causes, has generated a crisis of confidence in the markets just days ahead of the Fed's next interest rate decision.
Before the opening, First Republic Bank shares fell more than 23% even after several banks agreed to deposit $30 billion to rescue it. Moreover, SVB Financial Group, the parent company of Silicon Valley Bank, filed for bankruptcy under Chapter 11. In addition, oil prices fell, while precious metals and bonds gained ground as safe-haven assets.
The Dow Jones lost 0.49% or 214 points at 9:31 am ET, with JPMorgan sinking 2.02%. The Nasdaq 100 was flat, while Warner Bros Discovery led the gains, improving by 5.01%. A minute later, the S&P 500 declined 0.22%, as First Republic Bank dropped by 16.22%. The euro improved by 0.18% against the dollar at 9:28 am ET, selling for $1.06291.
