U.S. stocks continue to fall Pacwest Bank’s deposit outflow fuels anxiety

5/12 (Friday) morning market trends (compared to the previous day)

traditional finance

- NY Dow: $33,309 -0.6%
- Nasdaq: $12,328 +0.1%
- Nikkei Average: ¥29,126 +0.01%
- USD/JPY: 134.4 +0.1%
- USD Index: 102 +0.5%
- 10 year US Treasury yield: 3.38 -1.4% annual yield
- Gold Futures: $2,020 -0.8%

crypto assets

Bitcoin: $27,024 -1.8%
Ethereum: $1,796 -2.4%

NY Dow today

Today’s NY Dow fell sharply to -221.8. The Nasdaq remained solid at +22 dollars. Last night’s April US wholesale price index (PPI) showed continued disinflation, but the sharp drop in Pacwest bank has again increased distrust of US regional banks, further worsening investor sentiment. .

connection: Top 3 rankings of ETFs (listed investment trusts) in Japan and overseas that can be purchased with NISA

US April Wholesale Price Index

Last night’s April US wholesale price index (PPI) rose 2.3% year-on-year, below the forecast of +2.5% and the previous month’s +2.7%. It was the slowest rate of growth since early 2021 and continued to signal a slowdown in inflation.

Core PPI, which excludes food and energy, was also up 3.2% y/y, below expectations of +3.3%. The rise in prices in the service sector, such as food wholesale and healthcare-related services, appears to have been a factor.

The CPI announced on the night of the 10th also indicated signs of a slowdown in inflation, and like the PPI data this time, it seems that the content justifies the suspension of interest rate hikes at the FOMC in June.

connection: US CPI falls below 5% for the first time in 2 years, IT and virtual currency related stocks rise

Number of new unemployment insurance applications

On the other hand, the number of new unemployment insurance applications in the United States last week reached the highest level since October 2021, increasing uncertainty about the future of the economy.

Specifically, it was 264,000, an increase of 22,000 from the previous week, far exceeding the forecast of 245,000. Until now, large-scale personnel reductions by major IT companies such as Microsoft and Meta have started to affect the entire labor market.

Pacwest Bank Deposit Decline

The stock price of Pacwest Bancorp, a US regional bank in financial difficulties, fell 22.7% from the previous day. A sharp 9.5% drop in deposits last week re-fueled investor fears.

The bank’s announcement last week of strategic options, including a sale and a capital increase, appears to have contributed to the outflow of customer deposits.

Meanwhile, deposits at Western Alliance Bank rose by $600 million to $49.4 billion in the week ending Friday, which was a temporary boost.

Economic data from this week onwards

Monday, May 15, 21:30: May New York Fed Manufacturing Index
May 18, 21:30 (Thursday): Number of continuous recipients of unemployment insurance and number of new applications for unemployment insurance for the previous week
Friday, May 19, 24:00: Chairman Powell of the Federal Reserve Board remarks
May 23, 22:45 (Tuesday): US May Manufacturing Purchasing Managers Index (PMI, preliminary figures)
May 25, 3:00 (Thursday): Federal Open Market Committee (FOMC) Minutes
May 25, 21:30 (Thursday): U.S. January-March Quarterly GDP Personal Consumption (revised value)

connection: What is a real estate investment trust “REIT?” Explaining the main advantages and disadvantages

US stocks

IT and tech stocks performed well, supporting the Nasdaq. Individual stocks: NVIDIA -1%, c3.ai -1.6%, Tesla +2.1%, Microsoft -0.7%, Alphabet +4.3%, Amazon +1.8%, Apple +0.1%, Meta +1.1%.

alphabet

Google, a subsidiary of Alphabet, announced on the 11th that it will start providing services in Japanese and Korean for its conversational chatbot “Bard”. In addition, the English version of Bard will be available in more than 180 countries and regions. Google is using Bard to gain market share as it competes with Microsoft’s ChatGPT.

connection: Earon Mask reveals the concept of AI language model “TruthGPT” against ChatGPT

connection: Advantages and disadvantages of apartment investment that even beginners can understand

Virtual currency-related stocks fall

Coinbase｜$60.3 (-3.6%/+3.6%)
MicroStrategy | $287.3 (-8.8%/-12%)
Marathon Digital | $8.7 (-14.5%/-17%)

Marathon Digital Holdings, a Nasdaq-listed cryptocurrency mining company, has been sued by the U.S. Securities and Exchange Commission (SEC) for violating federal securities laws in connection with a mining center in Hardin, Montana. He said he had received a second subpoena. The first subpoena was received in the third quarter of 2021, and the contents of the subpoena were not disclosed.

connection: US mining company Marathon to launch large-scale facility in Abu Dhabi

connection: Ranking of investment trusts that can be selected under the tax incentive system “Tsumitate NISA”

The post U.S. stocks continue to fall Pacwest Bank’s deposit outflow fuels anxiety | 12th Financial Tankan appeared first on Our Bitcoin News.