US stocks decline as investors assess damage from Archegos' $20 billion margin call – Business Insider

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

Archegos was hit with a margin call that 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. Eight stocks plummeted on Friday as million-share block trades hit the market.

On Monday, after Archegos’ margin call, Nomura and Credit Suisse warned of significant exposure to the trades. A source told Bloomberg that Goldman Sachs’ losses were 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 ship Ever Given has been refloated. Oil prices fell in reaction.

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

Visa said it would allow the use of a dollar-backed cryptocurrency to settle payment transactions on its network, signaling a 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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