PACW - S&P Dow Nasdaq futures dip as pressure resumes on regional bank stocks
2023-05-09 06:40:20 ET
Stock index futures pointed to a lower open Tuesday as regional banks found themselves on the back foot again.
S&P futures ( SPX ) -0.3% , Dow futures ( INDU ) -0.3% and Nasdaq 100 futures ( NDX:IND ) -0.3% were lower.
Financials ( XLF ) were the weakest sector before the bell.
Regional bank shares jumped early Monday, but lost momentum into the close. The SPDR Regional Bank ETF ( KRE ) fell 2% premarket today. PacWest ( PACW ) was off 13% and Western Alliance ( WAL ) was off 6%.
Rates were also down. The 10-year Treasury yield ( US10Y ) fell 3 basis points 3.48% and the 2-year yield ( US2Y ) fell 3 basis points to 3.98%. The exception continued to be T-bills in the crosshairs of a debt ceiling deadline. The 1-month yield ( US1M ) rose 14 basis points to 5.60%.
There was some more encouraging news on credit conditions after Monday's SLOOS report showed banks continuing to tighten loan conditions .
The NFIB small business optimism index fell more than expected to 89 in April. But those finding credit hard to get fell to 6% from 9% in March.
"Four percent reported that financing was their top business problem," the NFIB said. "A net 26% of owners reported paying a higher rate on their most recent loan."
Labor quality was the top busines problem, followed by inflation.
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S&P, Dow, Nasdaq futures dip as pressure resumes on regional bank stocks