/US stocks decline as investors assess damage from Archegos’ $20 billion margin call

US stocks decline as investors assess damage from Archegos’ $20 billion margin call


NYSE trader

US stocks fell on Monday as investors began to assess the damage related to a forced liquidation of Archegos Capital, a family office run by former Tiger Management trader Bill Hwang.

Archegos was hit with a margin call, which led to the unwinding of more than $20 billion in stocks on Friday, erasing up to $35 billion in market valuation for a handful of stocks. These are the 8 stocks that plummeted on Friday as million-share block trades hit the market.

Several banks have been negatively impacted by Archegos Capital’s margin call, with Nomura and Credit Suisse both warning of significant exposure to the trades. Goldman Sachs said its potential losses are “immaterial.”

Here’s where US indexes stood at the 9:30 a.m. ET open on Monday:

The blockage of the Suez Canal could be nearing its end, as the stuck Ever Given ship has been refloated. Oil prices fell in reaction to the positive development.

Fly Leasing spiked 26% on Monday after the Carlyle Group agreed to acquire the aircraft leasing firm for $2.36 billion.

Visa said it will allow the use of a dollar-backed cryptocurrency to settle payment transactions on its network, signalling the growing adoption of crypto by major institutions.

Oil prices were lower. West Texas Intermediate crude fell 1%, to $60.34 per barrel. Brent crude, oil’s international benchmark, dropped by 1.1%, to $63.89 per barrel.

Gold fell 0.5%, to $1,725.30 per ounce.

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