Wall Street closed mixed on Monday (3/29) afternoon with bank stocks plunging amid warnings of potential losses from hedge fund defaults on margin calls. Meanwhile, economic optimism is still quite strong.
Quoting from Reuters, Tuesday (30/3/2021) The Dow Jones Industrial Average rose 103 points, or 0.31%, to 33,175.88, the S&P 500 lost 4.21 points, or 0.11% to 3,970.33 and the Nasdaq Composite down 102.52 points, or 0.78%, to 13,036.21.
The Dow Jones gainer was increasing because of shares of airplane maker Boeing Co.. The shares went up 1.9% after the company struck a deal with US airline Southwest Airlines Co for a variant of the 737 MAX aircraft.
Nomura Bank & Credit Suisse Faces Losses as Bank Shares Plunging on Wall Street
Nomura Bank and Credit Suisse faced billions of dollars in losses after the US hedge fund, named by sources as Archegos Capital, failed on a margin call.
Morgan Stanley shares fell 2.5% after the Financial Times reported it had also sold billions of shares, while the bank index slumped about 1.9%.
Discovery Inc, ViacomCBS, US-listed Baidu and VIPShop shares, all linked with Archegos are forecast to be lower, extending their recent losses.
The Nasdaq will post its first monthly decline in five months, while the S&P 500 and the Dow head for their second consecutive monthly gain.
