Dow, S&P, Nasdaq futures tread water as banking concerns linger
U.S. stock futures treaded water on Friday, dipping marginally, amid lingering banking concerns despite several big banks stepping in to rescue First Republic Bank (FRC), which has been facing growing outflow risks.
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Dow futures (INDU) inched 0.2% lower, S&P 500 futures (SPX) slipped 0.1%, while Nasdaq 100 futures (NDX:IND) were up 0.1%.
While the latest banking development was initially cheered by investors, First Republic’s (FRC) stock turned red after the bell as its dividend was suspended. Eleven major banks pledged $30B in deposits to First Republic (FRC), which is exploring strategic options to improve its liquidity, including a potential sale.
“Spreading the risk of financial contagion to achieve a false sense of confidence in FRB is bad policy,” said billionaire investor Bill Ackman. “The market has responded to this fictional vote of confidence with a 35% after-market decline in FRB stock.”
Yields were mixed, with the U.S. 10-year Treasury yield (US10Y) down 5 basis points at 3.53%, while the 2-year yield (US2Y) was up 1 basis point at 4.14%.
Economic data expected later in the day include latest industrial production data and consumer sentiment figures.
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