Wall Street closes in green and the Dow Jones rises 0.41%

Street closed this Friday in green and the Dow Jones Industrials, its main indicator, rose 0.41% in a volatile day that was altered by the Deutsche Bank share plungewhich revived concerns about the banking sector and fears of recession.

At the close of operations, the Dow Jones added 132.28 points, up to 32,237.53 units, and the selective S&P 500 added 0.56% or 22.27 integers, up to 3,970.99 points.

For its part, the composite index of the Nasdaq market, in which the main technology companies are listed, added 0.31% or 36.56 units, up to 11,823.96 integers.

The New York parquet closes the week with accumulated gains, although today it started in the red after the commotion caused in the European stock markets by the stock market debacle of the German financial giant and later recovered.

The fall of the titles of Deutsche Bankwhich came to lose more than 14% of their value, occurred after the entity announced that it plans to amortize 1,500 million dollars of subordinated debt on May 24, before its maturity in 2028.

The bank assured that it has “all required regulatory approvals” for that decision, but the news caused a deep impact in the banking sector.

This unexpected shock, which affected the European stock markets, occurs when Wall Street seemed to be leaving behind the storm that intensified in the United States in the past two weeks and which swept away the Silicon Valley and Signature banks.

The bank First Republicthe hardest hit by the financial crisis in recent days and rescued by the big banks with an injection of 30,000 million dollars, saw its shares devalued this morning by about 5%.

Analyst Larry McDonald, founder of the Bear Trap report, assured CNBC channel that the fall in the shares of Deutsche Bank and, before, of the Swiss Credit Suisseis because investors had not noticed their mismanagement until the crisis unleashed by the Silicon Valley bank.

“Banks like Credit Suisse and Deutsche Bank have been horribly managed for decades, and we’re talking about really poor management and horrible decisions and all of a sudden investors all over the planet are focused on that.”McDonald said.

On Wednesday, the Federal Reserve (Fed) The US announced its decision to increase interest rates by 0.25 points and its president, Jerome Powell, emphasized the credit risks of the banking sector.

Powell said stress in the banking industry could trigger a credit crunch, with “significant” implications for the economy.

Most sectors closed in the green, led by public services (3.12%), real estate (2.57%) and essential goods (1.63%), and only non-essential goods were affected (- 0.35%) and financial (-0.06%).

Among the 30 Dow Jones stocks, gains predominated, including those of Amgen (2.11%), P&G (2.07%) and Coca-Cola (1.64%), compared to Disney’s losses (-1 .82%), American Express (-1.81%) and JpMorgan (-1.51%).

In other markets, Texas oil closed at US$69.26 a barrel, and at the end of the trading session the yield on the 10-year US bond fell to 3.374%, gold fell to US$1,979 an ounce, and the dollar gained ground against the euro, with a change of 1.0759.