Last Updated 4:00 PM EST
Stock indices finished today’s trading session in the red. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 1.2%, 1.1%, and 0.49%, respectively.
The financial sector (XLF) was the session’s laggard, as it fell 3.28%. Conversely, the technology sector (XLK) was the session’s leader, with a loss of 0.15%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.41%. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 3.84%. This brings the spread between them to -43 basis points.
Compared to yesterday, the market is pricing in a higher chance of a lower Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 4.25% to 4.5% increased to 30.7% compared to yesterday’s expectations of 2.5%.
In addition, the market is now also assigning an 18.6% probability to a range of 4.75% to 5%. For reference, investors had assigned a 45% chance yesterday.
Last updated: 2:27PM EST
Major indices are hovering near intraday lows as we head into the final 90 minutes of the trading week. As of 2:27 p.m. EST, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.8%, 1.4%, and 1.5%, respectively
Last updated: 11:06AM EST
Stock indices are in the red so far in today’s trading session. As of 11:06 a.m. EST, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.6%, 1.1%, and 1.2%, respectively
On Friday, the University of Michigan released its preliminary results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 2.8%. This was lower when compared to the previous month.
Taking a look at consumer sentiment, results came in at 63.4, which was worse than the expected 66.9. This is also lower when compared to last month’s reading of 67. In addition, consumer expectations were lower than expected. March saw a print of 61.5 versus the forecast of 64.5. This was also a decrease compared to last month’s result of 64.7.
Last updated: 9:49AM EST
U.S. stocks opened lower on Friday morning as investors’ worries over the future of U.S. banks continued. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.2%, 0.42%, and 0.77%, respectively, at 9:49 a.m. EST, March 17.
Meanwhile, the U.S. industrial production data indicated that industrial production declined by 0.2% year-on-year in February, while economists were expecting industrial production to be at the same level. This slump in industrial production was prompted by a 7.6% decline in utility output and a 1% fall in manufacturing.
First published: 6:18AM EST
U.S. futures are in the green on Friday morning, as markets breathe a sigh of relief from the bailouts of both Swiss lender Credit Suisse Group AG (DE:CSX) (NYSE:CS) and San Francisco-based First Republic Bank (NYSE:FRC). Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.15%, 0.13%, and 0.05%, respectively, at 5:00 a.m. EST, March 17.
A consortium of major U.S. banks has injected $30 billion in deposits into the First Republic Bank to shore up its balance sheet and rescue it from a deposit flight. Similarly, the Swiss National Bank has agreed to lend Credit Suisse up to $54 billion to maintain its short-term liquidity. The banking crisis has been curtailed so far, and markets surely hope that no other banks come under the radar.
All eyes are on the Federal Open Market Committee (FOMC) meeting set for March 21 and 22, when the Fed will announce its latest interest rate decision. The Fed has to skillfully tackle the economic situation by keeping inflation in check while also ensuring that the ripple effects do not start serious problems in the economy.
Other macroeconomic data points expected today are the University of Michigan’s preliminary reading of the consumer sentiment index and the industrial and manufacturing production numbers.
Similarly, European indices are also trading in positive territory today, after news of financial aid to both Credit Suisse and FRC restored confidence in the banking sector.
Asia-Pacific Markets Finish in the Green
Asia-Pacific markets also followed suit, ending the trading day in the green on Friday. News of renewed faith in the banking sector buoyed a majority of indices. Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day up 1.64%, 0.73%, and 0.75%, respectively.
At the same time, Japan’s Nikkei and Topix indices ended the day in the green, up 1.20% and 1.15%, respectively.
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