Last Updated 4:00 PM EST
Stock indices finished today’s trading session in the green. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) gained 1.2%, 0.89%, and 0.34%, respectively.
The technology sector (XLK) was the session’s laggard, as it gained 0.25%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 2.07%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.49%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 3.96%. This brings the spread between them to -47 basis points.
Compared to Friday, 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 4.25% to 4.5% decreased to 9.6% compared to Friday’s expectations of 27.7%.
In addition, the market is now also assigning a 41.7% probability to a range of 4.75% to 5%. For reference, investors had assigned a 19% chance Friday.
Last Updated at 2:00PM EST
Stocks are in the green heading into the final two hours of today’s trading session. As of 2:00 p.m. EST, the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are up 0.9% and 0.7%, respectively. Meanwhile, the Nasdaq 100 (NDX) is flat on the day after cutting its earlier losses.
In addition, WTI crude oil is higher today, as it hovers around the mid-$66 per barrel range. Nevertheless, the commodity’s overall downtrend has caused prices at the pump to decline when compared to last week.
Indeed, the national average for regular gas was last $3.443 per gallon, down from last week’s reading of $3.473. This is significantly lower than the all-time high of $5.016 per gallon on June 14, 2022.
The highest prices can be found in California, where prices are substantially higher than the national average, at $4.851 per gallon. On the other hand, Oklahoma is the state with the lowest gas prices, at $2.98 per gallon.
Last updated: 11:15AM EST
Stocks are in the green so far in today’s trading session. As of 11:15 a.m. EST, the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are up 1% and 0.7%, respectively. Meanwhile, the Nasdaq 100 (NDX) is flat on the day after cutting its earlier losses.
Last updated: 9:40AM EST
Stocks opened mixed on Monday morning after the Swiss regulator engineered UBS’s takeover of Credit Suisse and Central banks around the world scrambled to avoid a liquidity crisis in the global banking system.
While the Nasdaq 100 (NDX) was down by 0.4%, the S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) were up 0.24%, and 0.7%, respectively, at 9:40 a.m. EST, March 20.
First published: 4:30AM EST
U.S. futures are in the red on Monday morning as lingering concerns of a banking contagion grasp global markets. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 0.24%, 0.40%, and 0.47%, respectively, at 4:30 a.m. EST, March 20.
Despite the financial backup received from the Swiss National Bank, beleaguered Swiss lender Credit Suisse Group AG (DE:CSX) (NYSE:CS) succumbed to financial pressures and is being taken over by rival UBS Group AG (GB:0R3T) (NYSE:UBS) for a meager $3.2 billion. The deal is being pushed by the Swiss government in an attempt to curb a global financial meltdown. Similarly, an American bank, First Republic (NYSE:FRC), is witnessing growing concerns over liquidity and has received further downgrades from rating agencies, despite the $30 billion deposit infusion by major U.S. banks.
Central banks worldwide are coming together to stop the crisis from widening. In an effort to boost liquidity, banks will now undertake their U.S. dollar swap line arrangements daily instead of weekly. Moreover, authorities worldwide are pressuring larger banks to backstop the smaller ones.
Traders are divided on their views of the Fed’s interest rate stance. A few believe that the Fed will ease its monetary policy following the current banking crisis. On the contrary, others think that the Fed will raise rates by at least 25 basis points as it has a larger role to play in curbing inflation. The Federal Open Market Committee’s (FOMC) two-day meeting commences tomorrow, March 21.
Other macroeconomic data points expected during the week include initial jobless claims and durable goods. On the earnings front, a few major results coming this week include Pinduoduo (NASDAQ:PDD), Nike (NYSE:NKE), GameStop (NYSE:GME), Darden Restaurants (NYSE:DRI), Chewy (NYSE:CHWY), and General Mills (NYSE:GIS).
Similarly, European indices were trading mixed at last check, as traders feared the outcome of the Credit Suisse takeover and the possibility of further bank failures.
Asia-Pacific Markets Finish in the Red
Asia-Pacific markets ended the trading session in negative territory following the news of Credit Suisse’s takeover. Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day down 2.65%, 0.48%, and 0.29%, respectively.
At the same time, Japan’s Nikkei and Topix indices ended the day in the red, down 1.42% and 1.54%, respectively.
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