Around 14:10 GMT, the Dow Jones gave up 0.54%, the Nasdaq index returned 0.55% and the broader S&P 500 index gave up 0.50%.

Like the European markets, Wall Street had its eyes on Deutsche Bank, which appears, in the eyes of the market, as the new weak link in the banking system, after the bankruptcy of three American institutions and the catastrophic takeover of Credit Suisse.

The latest development "fuels concerns about the health of the banking system," said Quincy Krosby of LPL Financial.

The sufferers of this banking crisis were targeted, in the first place the regional establishment First Republic (-2.08%). The San Francisco bank lost almost 90% of its market capitalization in just over two weeks.

The renewed tension also affected other regional brands, such as the Texas Comerica (-5.36%) or Zions (-4.94%), based in Salt Lake City (Utah).

Large US banks such as Wells Fargo (-2.44%) or Morgan Stanley (-4.36%) were not at their best either.

"We sell first and we'll ask the questions later," Krosby said. "Investors don't want to wake up on Sunday to find that Deustche Bank's situation has deteriorated, like a Credit Suisse."

The VIX index, which measures market volatility, jumped more than 6%.

The bond market has once again acted as a safe haven for investors, who have flocked to US Treasuries, causing their rates to fall, which move in the opposite direction of their prices.

The yield on 10-year U.S. government bonds fell to a six-month low of 3.27%. It stood at 3.35%, against 3.42% the previous day at the close.

"Banks are more than a sector," Krosby said. "It is the foundation of the entire economy", which credit institutions finance on a daily basis.

Despite this tightness, most stocks were trading within tight margins and the decline was contained.

On the quotation, Activision Blizzard soared (+6.36%) after the publication of an opinion of the British Competition Authority (CMA), considering, after examination, that the acquisition of the video game publisher by Microsoft (+0.06%) would not have a "substantial" effect on the console games market in the United Kingdom.

In tune with crude prices, oil stocks were battered, from ExxonMobil (-1.34%) to Chevron (-1.27%).

In the wake of its slippage linked to the accusations of the fund Hindenburg Research, which accuses it of misleading investors and laxity in regulatory matters, Block remained down (-2.93%).

First beneficiary of the setbacks of TikTok, even more weakened after the hearing of its director general in Congress Thursday, Meta remained well oriented (+0.62%).

© 2023 AFP