However, caution is still advised as regional bank, First Republic, based in San Francisco, is now in focus. Its shares plummeted more than 47% yesterday as S&P Global downgraded the company to junk status, warning that cash infusions from top banks may not be enough to save its problems.
The question now is if JP Morgan Chase CEO, Jamie Dimon, will throw them an additional lifeline. He said he was working on a rescue plan, but there are still many questions, and we’ll soon find out if any of this changes the Fed’s decision on interest rate hikes tomorrow. Goldman Sachs predicts that the Fed won’t raise rates at all.
