Wall Street rallied on Thursday with the S&P 500 hitting another intraday record high after the Federal Reserve kicked off its easing cycle with half-a-percentage point reduction.
At issue is how the central bank calculates an extra layer of capital it imposes on U.S. global systemically important banks, known as the “GSIB surcharge.”
Wall Street’s main indexes were mixed on Wednesday, with technology stocks attempting to find a floor after recent selloff.
Big U.S. lenders are expected to show they have ample capital to weather any renewed turmoil during this week’s Federal Reserve health checks.
Global growth will likely slow this year and major central banks across the globe have indicated interest rate cuts this year.
Wall Street’s main stock indexes as some big banks dipped after reporting dour quarterly results and most megacap growth stocks and chipmakers receded.
U.S. regulators have asked Citigroup for urgent changes to the way it measures default risk of its trading partners.
Stocks finished lower after upbeat December U.S. retail sales data eroded expectations the Federal Reserve will kick off its rate-cut campaign as early as March.
Citigroup CEO announced the company was carrying out its next layer of management changes in a sweeping reorganization.