Tuesday, December 5, 2023

Wall Street closes in red and the Dow loses 0.45% after Moody’s downgrade to banks

Wall Street closed this Tuesday in the red and the Dow Jones Industrials, its main indicator, lost 0.45% after the agency Moody’s downgrade the rating of a dozen US regional banks and put the rating of other more powerful entities under review.

At the end of the operations in the NYSEthe Dow Jones fell to 35,314.49 points, while the selective S&P 500 it was left 0.42%, to 4,499.38, and the Nasdaq market composite index fell 0.79%, to 13,884.32 units.

Moody’s decision, announced late on Monday, affected the price of the banking sector from the open and dragged down the rest of a floor that had already seen widespread losses last week.

By the end of the day, however, banks managed to moderate their declines – which had been quite sharp at the start of the day, with many dropping between 3% and 4% – and ended with limited reversals.

Among those directly affected by the agency’s downgrade, M&T Bank left 1.41%, Pinnacle Financial 2.12%, Commerce 0.86%, Old National Bancorp 1.56%, Webster Financial 0.91% or Fulton Financial 2.19%.

Of the banks that Moody’s placed on review for a possible rating downgrade, Bank of New York Melon it lost 1.32%, State Street 1.60%, Truist Financial 0.55% and US Bancorp gained 0.27%.

The big bank also managed to limit losses as the trading session passed and at the close the setbacks were not too big: JPMorgan Chase (-0.56%), Citigroup (-1.46%), Bank of America (-1.91%) and Wells Fargo (-1.29%).

Together, the financial sector it lost 0.87% today and led the falls along with non-essential goods companies (-0.87%) and raw materials (-1.05%). Only the health sector (0.78%), public services (0.49%) and energy (0.49%) closed in green.

Among the thirty values ​​of the Dow Jonesthe biggest drops were for Salesfroce (-2.07%), Goldman Sachs (-2.05%) and Travelers (-1.32%), while the best performers were Amgen (3.11%), Disney (1.50%) and Apple (0.53% ).

This Tuesday they continued to present business results more US companies, with United Parcel Service (UPS) as the most prominent.

The world’s largest courier company lost 0.88% on the stock market after reporting weaker-than-expected revenue and lowering its full-year billing outlook.

In other markets, the Texas oil it rose to US$82.92 a barrel and, at the close of the stock market, gold fell to US$1,959.4 an ounce, the yield on the ten-year US bond fell to 4.026% and the dollar gained ground against the euro, with a change of US$1,096.


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