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Banking sector pushes Wall Street lower at the start of the week's trading

29 Mar 2021 05:12 PM

Major indexes fell on Wall Street on Monday after a rally in Friday's session, as global banks said they were facing potential losses from a hedge fund defaulting to margin bids. Nomura and Credit Suisse warned of losses after the US hedge fund, which sources called Archegos Capital, faltered, hurting the shares of some major media outlets and Chinese technology companies.

Morgan Stanley’s shares were down nearly 3% after the Financial Times reported that it also sold billions of shares, while Bank of America, Citigroup, JPMorgan, Goldman Sachs, and Wells Fargo fell between 0.3% and 2.7%.

The news raised concerns over whether the full extent of Archegos' clear survey had been achieved or whether there was more selling coming from other lenders.

The Dow Jones and S&P 500 reached record closing levels on Friday amid optimism about quick vaccinations and huge stimulus, while the Nasdaq technology index is still around 7.1% far from a record high in February.

Aircraft maker Boeing rose 2.6% after reaching an agreement with US low-cost carrier Southwest Airlines to buy a different version of the 737 MAX. Southwest shares were up about 0.5%.

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