Banks popular on Wall Street after support for First Republic

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US regional banks ended in the green after several days of heavy losses. Investors regained some hope after a support campaign for First Republic Bank from several larger banks. That California bank was feared that it could run into the same problems as the collapsed Silicon Valley Bank.

Eleven banks have deposited a total of $30 billion into accounts with First Republic. As a result, the bank has sufficient money available to meet all customer requests for money in the short term.

Shares of First Republic, which were previously more than a third lower, eventually closed with a plus of 10 percent. PacWest Bancorp (plus 0.7 percent) and Western Alliance Bancorp (plus 14.1 percent) also finished in the green.

US regional banks ended in the green after several days of heavy losses. (Unsplash)


Investors are also curious about how the US central bank will respond to the turmoil in the banking sector. The Federal Reserve will hold its interest rate meeting next week and investors hope that the central bank will then decide to lower interest rates in order to maintain calm in the financial sector. However, the European Central Bank (ECB) decided on Thursday to hold on to an interest rate increase of half a percentage point.

The Dow Jones index also recovered and ended 1.2 percent higher at 32,246.55 points. The broad-based S&P 500 rose 1.8 percent to 3960.28 points and tech fair Nasdaq gained 2.5 percent. That indicator came to 11,717.28 points.

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Snap, the parent company of the Snapchat app, rose 7.3 percent. The price gains of the company behind the popular photo and video sharing app followed the possible ban of the Chinese video app TikTok in the United States.

The popular TikTok is owned by the Chinese tech company ByteDance and, according to the US government, poses a threat to national security. The US government is therefore demanding that ByteDance sell its stake in TikTok. If this does not happen, a ban on the app in the US is imminent. Meta Platforms, the parent company of Facebook, WhatsApp and Instagram, also benefited from the possible ban and climbed 3.6 percent.

Virgin Orbit fell almost 30 percent. The aerospace company of the well-known British businessman and billionaire Richard Branson has sent almost all employees on leave. The furlough is intended to give the company more time to finalize a new investment plan to get out of financial trouble.

Euro dollar

The euro was worth $1.0612, against $1.0622 at the closing bell in Europe. A barrel of US oil cost 1 percent more at $ 68.30. Brent oil became 1.3 percent more expensive at $ 74.68 per barrel.

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