U.S. stock indexes opened lower on Friday, giving back some of Thursday’s gains as investors still assessed the health of the banking sector after First Republic Bank was rescued by a group of major U.S. lenders. The Dow Jones Industrial Average lost 138 points, or 0.4%, to 32,130. The S&P 500 was off 0.2%, while the Nasdaq Composite declined by 0.1%. On Thursday, a group of America’s largest banks including JPMorgan, Citigroup, Bank of America and Wells Fargo agreed to plunk $30 billion of uninsured deposits into First Republic Bank. Shares of First Republic opened 17% lower on Friday after the bank suspended its dividend and disclosed higher borrowing costs eating into its valuation Thursday after hours.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
0
0
