(CercleFinance.com) – The New York Stock Exchange opened lower on Friday, after its rebound the day before, at the end of a week of great volatility triggered by the difficulties of several banks on both sides of the Atlantic.
As midday approaches, the Dow Jones yields 1.4% to 31,785.4 points, while the Nasdaq Composite limits its decline to 1.1%, around 11,585.2 points.
The start of the session was nervous, reflecting the development of the week since the announcement – last weekend – of the bankruptcy of Silicon Valley Bank, which reinforced fears of a domino effect to the rest of finance American.
Investors certainly seemed relieved by the numerous initiatives taken by the Federal Reserve to limit any risk of contagion, but the uncertainties have not all been lifted.
First Republic Bank shares are down another 25% despite the California bank announcing last night that it would benefit from $30 billion in uninsured deposits from 11 major banks.
With a decline of 3.2%, the financial services sector is by far the strongest sector of the day.
Over the week, the Dow has so far fallen by barely 0.2%, while the Nasdaq has posted a weekly gain of 4.2%.
The trend towards volatility and the difficulties in the financial sector seem to favor technology stocks, which are increasingly seen as safe havens in the very uncertain environment of the moment.
While all the S&P sector indices are in the red today, that of the high-tech sector shows the least pronounced decline at the start of the day (-0.4%).
The index that measures the implied volatility of the S&P 500 – which had fallen sharply in recent days – is rising sharply by more than 10% beyond 25 points.
Volatility should remain high for a few days, knowing that the Federal Reserve will convene its monetary policy committee from next Tuesday, the conclusions of which are eagerly awaited by the markets.
Copyright (c) 2023 CercleFinance.com. All rights reserved.