Share

US stocks tumble on worries about Deutsche Bank

New York - Wall Street stocks tumbled on Thursday on renewed worries about banks following a report on withdrawals from Deutsche Bank and a bruising Capitol Hill hearing with the head of Wells Fargo.

The Dow Jones Industrial Average dropped 1.1% to 18 143.45.

The broad-based S&P 500 fell 0.9% to 2 151.13, while the tech-rich Nasdaq Composite Index shed 0.9% to 5 269.15.

US shares of Deutsche Bank sank 6.7% following a report that about 10 hedge funds withdrew some funds from the German bank due to worries about the bank's condition.

Wells Fargo lost 2.1% after chief executive John Stumpf was berated by lawmakers over a bogus accounts scandal, with some demanding he resign.

Other large banks, including Goldman Sachs and JPMorgan Chase, also retreated.

"Memories are very fresh from the financial crisis," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

"The financial system is the lifeblood of any economy and if the financials are weak, that has a negative implication for the lending needed to support a growth of the economy."

Petroleum-linked shares mostly rose after Wednesday's deal between OPEC producers to limit output boosted oil prices. ConocoPhillips and Halliburton both climbed more than three percent.

Pharmaceutical shares fell as polls showed momentum for a California referendum to limit drug prices. Amgen lost 2.5%, Bristol-Myers Squibb 2.2% and Pfizer 2.0%.

NXP Semiconductors surged 16.9 following a Wall Street Journal report it was in talks to be acquired by Qualcomm for $30bn. Qualcomm rose 6.3%.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.87
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders