US stocks fall as bank worries linger after firms borrow $165 billion from Fed to shore up liquidity

• US stocks fell on Friday as investor issues concerning the present state of the US banking trade linger.
• Banks borrowed $165 billion from the Federal Reserve’s backstop program to shore up liquidity.
• First Republic fell 20% after it cut its dividend, and SVB Financial filed for chapter in New York.

US stocks edged decrease on Friday as traders continued to fret concerning the present state of the US banking trade.

The Federal Reserve said late Thursday that it lent a mixed $165 billion to numerous US banks as they took advantage of their emergency backstop insurance policies in a bid to shore up liquidity. The Fed’s steadiness sheet rose by practically $300 billion over the past week, basically giving up half the progress it has made in lowering its steadiness sheet over the past year.

First Republic Bank shored up liquidity via a $30 billion capital infusion from main US banks like JPMorgan, Wells Fargo, Goldman Sachs, Morgan Stanley, and Bank of America, amongst others. Still, the deal wasn’t sufficient to stem the decline in First Republic Bank’s stock, which fell 20% on Friday after it suspended its dividend.

Here’s the place US indexes stood shortly after the 9:30 a.m. ET open on Friday:

• S&P 500: 3,948.19, down 0.31%
• Dow Jones Industrial Average: 32,041.69, down 0.64% (204.86 factors)
• Nasdaq Composite: 11,697.80, down 0.17%

Here’s what else is going on this morning:

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• SVB Financial Group filed for Chapter 11 chapter safety on Friday, per week after former unit Silicon Valley Bank was shut down by regulators.
• Credit Suisse shares resumed their decline on Friday, shedding maintain of the earlier day’s rally in a sign traders aren’t satisfied the embattled Swiss banking giant is out of the woods but.
• Russian gas has been put into floating storage on account of a scarcity of patrons, with as a lot as 1.9 million barrels of its diesel stranded at sea.
• Billionaire investor Carl Icahn has urged the Federal Reserve to press forward with its battle against inflation regardless of the turmoil attributable to Silicon Valley Bank’s current failure.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil fell 0.82% to $67.79 per barrel. Brent crude, oil’s worldwide benchmark, dropped 1.34% to $73.70.
• Gold rose 1.64% to $1,954.60 per ounce.
• The yield on the 10-year Treasury sank 11 foundation factors to three.47%.
• Bitcoin rose 3.16% to $26,651, whereas ether jumped 1.86% to $1,744.