Last Updated: 4:03 PM EST
Stock indices finished today’s trading session mixed. Indeed, the Nasdaq 100 (NDX) gained 0.1%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) fell 0.14% and 0.77%, respectively. Furthermore, the U.S. 10-Year Treasury yield decreased to 4.22%, a five-basis-point drop. Similarly, the Two-Year Treasury yield also slipped, as it hovers around 4.6%.
During a recent talk at the University of Michigan Law School, Federal Reserve Vice Chair for Supervision Michael Barr reassured the public about the stability of the U.S. banking system. Barr highlighted the overall resilience of banks, dismissing liquidity concerns that typically precede financial distress.
He pointed out that there isn’t the same level of stress this year as in March 2023, when a deposit run led to the insolvency of Silicon Valley Bank. This ended up triggering a series of bank failures in the months that followed. Barr mentioned that banks have significantly improved their liquidity positions since then, suggesting the banking sector is better equipped to manage liquidity and avoid the challenges faced in the past year.
First Published: 3:45 AM EST
U.S. futures inched lower on Friday morning after major indices reached new highs. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.09%, 0.05%, and 0.04%, respectively, at 3.35 a.m. EST, March 22.
All three major indices — the Nasdaq 100, the S&P 500, and the Dow Jones — hit an all-time high on Thursday and will likely end the trading week in the green. The rally was fueled by the Federal Reserve chair Jerome Powell’s remarks on potential interest rate cuts.
According to Bill Adams, chief economist at Comerica Bank, the central bank could implement interest rate cuts of 25 basis points each at the June, September, and December Federal Open Market Committee (FOMC) meetings. However, he added that any surprises in the unemployment report this year could prompt the Fed to adopt an aggressive monetary policy.
In major stock news, shares of delivery services company FedEx (FDX) surged 13% in the extended trading session on better-than-expected Q3 earnings. However, Apple (AAPL) stock declined over 4% yesterday after the Justice Department sued the tech giant over antitrust violations. Also, Lululemon (LULU) tanked by 11% in after-hours following the announcement of a soft guidance.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.24%. At the same time, WTI crude oil futures trended lower, hovering near $80.55 per barrel as of the last check, as speculation regarding a potential easing of geopolitical tensions in the Middle East, pointed to an increase in oil supply.
Elsewhere, European indices are expected to open lower today as investors assess interest rate decisions from major central banks.
Asia-Pacific Markets Were Mixed on Friday
Asia-Pacific indices ended today’s session on a mixed note as investors are looking ahead to the manufacturing and services data in China to gain an insight into the overall health of the economy. Simultaneously, the Japanese markets registered strong gains after headline and core inflation rates both rose to a four-month high in February.
Japan’s Nikkei and Topix indices gained 0.18% and 0.61%, respectively. However, Hong Kong’s Hang Seng index was 1.98% lower at the time of this writing. Meanwhile, China’s Shanghai Composite and Shenzhen Component indices fell by 0.95% and 1.21%, respectively.
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