Contagion effects from the U.S. regional banking crisis continues to affect the sector despite repair measures from the authorities. Following the collapse of First Republic Bank and the subsequent acquisition by JP Morgan, regional bank shares dropped heavily this week too. The latest stock decline also gave rise to speculation that there is yet another regional bank on the brink of collapse. Overall, pressure on the U.S. banking system is still at the peak as major bank indices display significant falls, ahead of the crucial FOMC meeting.
Also Read: Bitcoin (BTC) Transaction Fee Shoots to 3-Year High Hinting Strong Network Demand
On Tuesday, May 2, 2023, traders wondered if PacWest Bancorp is the next bank to see a crisis as the bank’s stock price dropped 28% in the day. Meanwhile, pre-market figures on Wednesday indicated a continuing trend in the U.S. banking sector.
PacWest Bancorp Is Next?
While PacWest shares were the most to drop among bank stocks, another stock of Western Alliance fell around 15% on Tuesday. This sentiment continues even after JP Morgan CEO Jamie Dimon’s comments that the starting phase of the US banking crisis was behind us. What began as a lone collapse with Silvergate Capital spread to Silicon Valley Bank and First Republic Bank.
Meanwhile, the U.S. stock market would also take into account the U.S. Federal Reserve’s rate hike decision which is scheduled for later today, when the market opens. Also, Fed Chair Jerome Powell also might make a comment on the ongoing banking crisis.
Also Read: BitFlyer Penalized By New York Regulator For Violating Laws
The post PacWest Bancorp, Other US Bank Stocks Drop Pre-Market Ahead Of FOMC Meet appeared first on CoinGape.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks