WAL - Bank Worries Punish Markets as PacWest Western Alliance Stocks Fall Sharply
2023-05-02 13:54:00 ET
The stock market has been nervous about the condition of the financial sector for a while now, and concerns mounted once again on Tuesday. Major market indexes were down between 1% and 2% at midday as investors wondered if the latest bank failure would prove to be the last. Moreover, against the backdrop of the ongoing Federal Reserve meeting to decide what to do with interest rates, market participants seemed particularly on edge.
Among regional banks, significant declines were prevalent. PacWest Bancorp (NASDAQ: PACW) and Western Alliance Bancorporation (NYSE: WAL) were among the worst performers in the industry on Tuesday, and the drops in bank stock prices certainly suggest that the investing community needs more reassurance about how the banking system will handle current pressures.
Shares of PacWest Bancorp were down 27% as of 12:30 p.m. ET. The Beverly Hills-based banking institution has seen its stock fall by more than 75% since early March as investors fear that some of the same problems that led to past bank failures elsewhere could threaten PacWest as well.
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Bank Worries Punish Markets as PacWest, Western Alliance Stocks Fall Sharply