Wall Street fell due to a decline in bank stocks

The US stock market declined amid growing concerns about the banking system in the country.

Experts note that concern about the well-being of the US banking system significantly weakens optimism that the Fed is already nearing the end of the interest rate hike cycle. According to representatives of the regulator, the recent actions of the Central Bank have already begun to cool inflationary pressure, judging by the current macroeconomic data.

Recall that on Wednesday, the Fed again raised the rate by 25 basis points, to the highest level since 2007 – 5-5.25% per annum. 

The Dow Jones index fell by 286 points to 33.127, the S&P 500 index lost 0.72% and reached 4.061, and the NASDAQ Composite index declined by 0.49% to 11.966.

Apple Inc shares fell by 1.66% (to $165.79), despite the fact that the quarterly earnings report exceeded analysts' expectations. The company reported earnings per share of $1.52, with earnings of $94.8B. Analysts had expected earnings per share to be $1.43 and total revenue to be $92.9B.

Shares of chip maker Qualcomm Incorporated fell 6.7% after the report for the last quarter failed to meet expectations.

Shares of Los Angeles-based lender PacWest Bancorp fell 47% after announcing that the company was considering strategic options, including a sale. This happened a few days after regulators confiscated First Republic Bank, and JPMorgan agreed to buy its deposits and most of its assets.

Shares of other regional banks are also feeling the pressure: shares of KeyCorp fell by 7%, and Zions Bancorporation – by 8%.