The main American exchanges ended this Tuesday’s session in a fall, after the risk rating agency Moody’s downgraded the rating of several small financial institutions in the United States, causing risk aversion in global markets as well.
The Dow Jones, S&P500 and Nasdaq 100 all fell 0.45%, 0.42% and 0.87%, respectively. Around 17:00, the yields of the bonds of the US Treasury of two years operated stable, to 4.760%, and those of ten years advanced 6.9 basis points, to 4.026%.
Earlier, Moody’s downgraded the ratings of ten small and medium-sized US banks, in addition to including institutions such as Bank of New York Mellon under review for a potential downgrade. The agency cited high interest rates in the US and the mismatch in asset and liability management among the sector’s risks.
The movement occurred at a time when investors are beginning to regain confidence in the American banking system, after the failure of regional banks at the beginning of the year, including the Silicon Valley Bank, in California. The KBW index of regional banks fell 1.39% on Nasdaq.
“Markets are slowly digesting the possibility that perhaps the US financial system is not absolutely perfect and that we may have to deal with higher interest rates for longer,” said the director of public investments at Guidestone Capital Management , Branzon Pizzurro, to Refinitiv.
Shares in major banks such as Goldman Sachs and Bank of America fell 2.05% and 1.91%, respectively, while BNY Mellon fell 1.32% on the NYSE.
Around 4:00 pm, Brent oil futures contracts for October advanced 0.81%, to US$86.03 per barrel, reversing the decline of the beginning of the day, driven by the projection of an increase in the production of the commodity in the US in the second half by Information and Energy Management (EIA).