US: Stocks mixed as banks tighten lending standards

WALL Street stocks finished mixed on Monday ahead of key inflation data as a survey of lenders showed greater caution among banks following recent industry turmoil.

Banks tightened lending standards in the first few months this year, and expect this to continue over the rest of 2023, according to a Federal Reserve survey.

Regional banks have been under stress amid worries over deposit flight, on the back of four bank failures since early March.

More cautious lending policies have been seen as a drag on growth.

The Dow Jones Industrial Average ended down 0.2 per cent at 33,618.69.

The broad-based S&P 500 edged up 0.1 per cent to 4,138.12, while the tech-rich Nasdaq Composite Index added 0.2 per cent at 12,256.92.

Regional banks gave back most early gains and were mixed at the end of the day.

Western Alliance Bancorporation won 0.7 per cent and PacWest Bancorp climbed 3.7 per cent but KeyCorp and Huntington Bancshares both dropped more than one per cent.

Tyson Foods plunged 16.4 per cent as it reported a quarterly loss of US$97 million due to higher costs. The meat company’s full-year revenue forecast lagged analyst expectations.

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Markets are looking ahead to Wednesday’s release of key consumer price data, which will be followed by a reading on wholesale prices the next day.

The reports are key inputs on the progress made since the Fed began significantly hiking interest rates more than a year ago in response to inflation. AFP