Last Updated 4:01 PM EST
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Stock indices finished today’s trading session in the green as concerns regarding the U.S. banking sector seemed to ease. The Dow Jones Industrial Average (NDX), the S&P 500 (SPX), and the Nasdaq 100 (NDX) gained 0.98%, 1.31%, and 1.42%, respectively.
The utilities sector (XLU) was the session’s laggard, as it fell 2%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 3.45%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.6%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.18%. This brings the spread between them to -58 basis points.
Compared to yesterday, the market is pricing in a higher chance of a higher Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 4.5% to 4.75% decreased to 9.8% compared to yesterday’s expectations of 42.4%.
In addition, the market is now also assigning a 48.6% probability to a range of 5% to 5.25%. For reference, investors had assigned a 6.6% chance yesterday.
Last Updated 2:20PM EST
Stock indices are in the green so far in today’s trading session. As of 2:20 p.m. EST, the Dow Jones Industrial Average (NDX), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.4%, 0.8%, and 0.8%, respectively
Last Updated 11:30AM EST
Stock indices are in the green so far in today’s trading session. As of 11:30 a.m. EST, the Dow Jones Industrial Average (NDX), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.7%, 0.8%, and 0.5%, respectively
On Tuesday, the National Association of Realtors released its U.S. Existing Home Sales report, which measures the change in sales of existing residential buildings during the previous month on an annualized basis.
Existing home sales came in at 4.58 million for the month of February, above the expected 4.19 million. As a result, existing home sales increased month-over-month by 14.5% after a -0.7% decline in January. Indeed, this snaps a 12-month streak of declines.
Last updated: 9:37AM EST
Stocks opened higher on Tuesday morning as concerns regarding the U.S. banking sector seemed to ease and the FOMC convened for a two-day meeting. The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are up 1%, 1.04%, and 0.9%, respectively, at 9:37 a.m. EST, March 21.
First published: 6:36AM EST
U.S. futures are inching higher on Tuesday morning, as investors look past the banking woes and see signs of curbing the contagion. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are up 0.18%, 0.53%, and 0.66%, respectively, at 5:20 a.m. EST, March 21. Markets are expected to experience a roller coaster ride this week until they move past the banking fears and digest the Fed’s rate hike stance.
Regional banks are lifting the markets higher following hopes that a Jamie Dimon-led strategic plan will save First Republic (NYSE:FRC) from collapsing. FRC stock was up over 20% in pre-market trading at the last check. Authorities worldwide are trying to restore investor and depositor confidence. Larger, well-capitalized banks are being pushed to support the smaller ones.
The only possible outfall of this tactic is that big banks end up adding bad bundles of bonds and loans to their balance sheet, leading to risks for well-capitalized banks, just as in the case of UBS taking over Credit Suisse’s bad assets. Most importantly, the global economies are trying to stabilize the situation to avert a 2008-like financial crisis amid fears of a looming recession.
Markets eagerly await the Federal Reserve’s decision on interest rates after their 2-day Federal Open Market Committee (FOMC) meeting ends tomorrow, March 22. The majority of traders are expecting a 25 basis point increase in interest rates.
On the earnings front, a few major results coming this week include GameStop (NYSE:GME), Darden Restaurants (NYSE:DRI), Chewy (NYSE:CHWY), and General Mills (NYSE:GIS).
A majority of European indices are in positive territory today, as fears of banking contagion quell following UBS’ $3.2 billion takeover of Credit Suisse.
Asia-Pacific End in the Green
Asia-Pacific markets ended the trading session in the green today, following the relief rally in U.S. stocks. Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day up 1.36%, 0.64%, and 1.37%, respectively.
Meanwhile, Japan’s indices remained closed today on account of the Vernal Equinox holiday.
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