Bloomberg Business

Carl Icahn, the famed activist investor who’s made a career out of starting corporate brawls, found himself on the receiving end of criticism Tuesday after Hindenburg Research disclosed a short call against his investment firm.

PacWest Bancorp and Western Alliance Bancorp led a deep selloff in regional lenders Tuesday, as renewed fears over the health of the financial system hit Wall Street after the second-largest US bank failure ever.

Yields on Treasury bills for early June soared Tuesday in the wake of a warning from Treasury Secretary Janet Yellen that the US government could run into debt-ceiling limitations as soon as the start of next month.

Bearish bets on regional banks jumped appreciably in the last week and hedge fund shorts were part of the initial surge in selling as the group’s shares dropped Tuesday morning.

Former Treasury Secretary Lawrence Summers said he was less worried about continuing turmoil in the US banking sector than he is about the partisan impasse in Washington over raising the federal debt limit.

Uber Technologies Inc. shares surged after the company reported earnings that beat analysts’ estimates, showing that consumers continue to spend more on rides and food takeout despite an uncertain economic outlook.

Oil fell the most in almost four months as thin trading volumes exacerbated the fallout from gloomy reports about the health of the global economy.

While bond traders have long been betting on a dovish turn from the Federal Reserve, stock traders have yet to fully embrace this and would fuel an equity rally on such an outcome, according to JPMorgan Chase & Co.’s trading desk.