News

Published: Mar 24, 2023
Updated: Mar 24, 2023

Global Markets Experience Turmoil as Banking Stocks Drop, Gold Jumps, and Central Banks Hike Rates Amidst Layoffs in Tech and Retail

Global markets witnessed a mixed bag of news on March 24, 2023. While US banking stocks faced a significant fall during the session, Nasdaq struggled to receive support from heavyweight tech shares, and the SP500 closed below session highs. On the other hand, gold prices soared to touch $2,000 again. In addition, central banks around the world, including the Bank of England (BoE), Swiss National Bank (SNB), and Norway Bank, announced rate hikes despite the ongoing banking turmoil. Meanwhile, tech company Accenture posted better results but also announced layoffs, and retail giant Walmart also disclosed further job cuts.

US Banking Stocks and Tech Shares

Despite the optimism of previous sessions, US banking stocks faced a substantial dip on March 24, with the Nasdaq index struggling to gain support from heavyweight tech shares. This decline comes after a period of substantial growth in the financial sector, with many banks experiencing record profits in recent quarters. However, the dip in banking stocks could indicate that the financial sector may not continue to see this same level of growth in the future.

Central Banks Hike Rates Amidst Banking Turmoil

Despite the ongoing banking turmoil, the Bank of England (BoE), Swiss National Bank (SNB), and Norway Bank all announced rate hikes on March 24. BoE hiked by 25 basis points, SNB by 50 basis points, and Norway Bank by 25 basis points. These hikes were in line with expectations, indicating that central banks may be taking a proactive approach to stabilize the financial sector amidst ongoing uncertainty.

Accenture Posts Better Results But Announces Layoffs

Tech company Accenture posted better-than-expected results on March 24, indicating a strong outlook for the company. However, the announcement of 19,000 layoffs may raise questions about the future of the tech sector. Accenture's move follows similar actions taken by other tech giants in recent months, suggesting that the industry may be facing some uncertainty in the short term.

Retail Giant Walmart Announces Further Layoffs

Retail giant Walmart announced further layoffs on March 24, indicating ongoing struggles in the retail sector. Despite efforts to adapt to changing consumer behavior, many retailers continue to face challenges as the pandemic persists. Walmart's move highlights the ongoing need for companies to adapt to changing market conditions to remain competitive.

Uncertainty looms

Global markets continue to face uncertainty as banking stocks crisis continues.Central banks are taking a proactive approach to stabilize the financial sector by announcing rate hikes, despite ongoing turmoil. In the tech and retail sectors, layoffs continue to be announced, highlighting the ongoing need for companies to adapt to changing market conditions to remain competitive.