The US banking sector keeps tumbling


Nikkei 225


▼ -388.12 / -1.42%

SSE Composite


▼ -15.64 / -0.48%



▼ -986.38 / -0.97%

Straits Times


▼ -43.52 / -1.37%



▼ -580.09 / -1.10%

Dow Jones


▲ +233.71 / +0.73%

DAX 30


▲ +153.86 / +1.04%



▼ -360.95 / -0.62%

FTSE 100


▲ +63.54 / +0.87%

JSE Top 40


▲ +1,798.12 / +2.68%

Last Week’s Highlights

First Republic Bank falls on suspending dividend

During the last sessions, the US bank First Republic has suffered several drops in its shares. For that reason, the entity received a rescue package with $30 billion in deposits injected by large US banks. Despite this, the bank’s shares plunged 33%, which marks an accumulated fall of more than 80% in the last 10 sessions. According to information from the New York Times, First Republic was in talks to raise money from other banks or private equity firms through the sale of new shares. In the newspaper report, there is also talk that the bank could negotiate its sale. First Republic declined to comment on the matter.

SVB Financial looks for bankruptcy protection

With the growing problems in the banking sector, SVB Financial Group filed for bankruptcy. Last Friday, it announced that it filed for Chapter 11 bankruptcy protection to seek buyers for its assets. This comes after the Silicon Valley Bank unit has already been placed in receivership by US regulators. This comes at a time when fears of financial contagion are growing as shares of major banks fell between 1.5% and 3% in early trading. Since the collapse of Silicon Valley Bank and Signature Bank last week, financial stocks have lost more than billions of dollars and the credit environment has worsened for many Wall Street banks.

Coming Up This Week

FedEx shares rise on optimistic forecast

Recently, FedEx has been gradually reducing its operating costs by closing offices, eliminating certain jobs, reducing flights, grounding aircraft, and canceling Sunday deliveries in remote areas. Thanks to this, and despite the poor conditions the market is going through, the US company raised its profit forecast for the fiscal year 2023. The company announced that its plan included cutting $3.7 billion, which boosted its shares by more than 11%. “Our cost measures are taking hold, leading to an improved outlook for the current fiscal year,” FedEx CEO Raj Subramaniam explained in a statement.

Meta’s new subscription service

Meta Platforms on Friday launched a subscription service that allows users of both Facebook and Instagram to pay for account verification. The service known as Meta Verified will be available for the US only and will award a blue badge to users after they verify their accounts using a government ID. The subscription will be priced at $11.99 monthly from the web, or $14.99 from iOS and/or Android. This is similar to what Twitter already does since the Elon Musk acquisition, who launched their subscription service called Blue. At its inception in November last year, many users were impersonating celebrities and brands on the platform. For that reason, Twitter Blue was suspended for a while and returned with the distinctive feature of having different colored brands to distinguish individuals from companies, governments, and/or public figures.

All information provided was collected up to the last business day of the previous week of the release of this NewsFlight. The purpose of NewsFlight is to summarize and make accessible information on a variety of topics within the world of investing and personal finance, and thus cannot be considered formal research or reports. All sources utilized to compile the NewsFlight newsletter are considered trustworthy by the FlexInvest team. FlexInvest is not affiliated with and does not receive remuneration from the news sources used to compile NewsFlight. As well, any images or logos incorporated into the NewsFlight newsletter are not necessarily property of FlexInvest and may solely be included to provide context for the news covered. NewsFlight should not be taken as advice to sell or buy securities or to make any investment. When investing in securities or other financial products, there is always the potential to lose money or asset value. FlexInvest recommends that its users consider their investment objectives and risks before investing. Additionally, any projections or analysis made by authors of NewsFlight cannot be considered as a promise of future trends or returns. Opinions expressed in NewsFlight are not representative of FlexInvest.

Market News

The main Wall Street indexes closed the week down due to a crisis in the banking sector. The problems directly impacted the growing uncertainty regarding a possible recession. This led the numbers of the three US indexes to end Friday’s session with numbers in negative.

The Dow Jones subtracted 384.57 points, or 1.19%, to 31,861.98, the S&P 500 declined 43.64 points, or 1.10%, to 3,916.64 and the Nasdaq Composite lost 86.76 points, or 0.74%, to 11,630.51.

Wild Card

Morgan Stanley pounds the table on Nvidia stock.

More things to sip on...

Charles Schwab assets exploded over the past week.
Credit Suisse falls as investors worry about a default.
Large banks “bail out” the Federal Reserve.

Latest Market Insights

Google finds a dividend

Alphabet announces its first dividend ever, while Microsoft beats expectations. Intel forecasts disappoints and Apple to grow in AI.

Should you stay away from Boeing stock?

Get the latest update on Boeing stocks and their turbulent journey. Find out what’s causing the decline and the potential implications for investors.

Banking sector sell-off

JPMorgan beats profits estimates but misses income expectations. Salesforce plans a big acquisition, while Tesla to layoff 10% of workforce.