The KBW Nasdaq Regional Bank Index experienced its most severe drop since March, decreasing by 6%. This slump was primarily instigated by New York Community Bancorp, Inc. (NYSE: NYCB), which saw a nearly 40% drop following a Q4 loss of $260 million, consequent to distressed commercial real estate loans.
U.S. Treasury yields dropped
to their lowest levels so far in 2024 on Thursday as renewed
concerns about the regional banking sector and
higher-than-expected jobless claims pushed investors.
Global equity markets
rebounded on Thursday on expectations that interest cuts by the
Federal Reserve and other central banks were coming, though not
as soon as hoped for, while Treasury yields slid.