Equities closed in the friendly territory on Friday: the DOW Jones lost 1.19% to 31,861.98, the S&P 500 fell 1.10% to 3,916.64, and the NASDAQ 100 made a – 0.74% to 11,630.51.
U.S. stocks began to rally on Thursday after a group of banks said they would help First Republic Bank through the industry slump.
An announcement from Credit Suisse made investors more optimistic: It would borrow up to nearly $54 billion from the Swiss National Bank to ensure liquidity soon.
However, tensions remain in the global system. On Thursday morning, the 10-year US T bond saw the yield drop from 3.56% at the start of the Asian session to 3.55%.
Asian stocks were up Thursday morning, thanks in part to the bailout intervention by a group of American banks against the First Republic Bank for 30 billion dollars, which, however. However, er, this,er-hour trading session losing about 17%.
The Nikkei climbed more than 1%, Hong Kong 1.8%, Shanghai 1.4%, gold gained 0.5and % to $1,934 an ounce on Thursday, while US WTI oil climbed by 0.8% to 68.89 dollars a barrel.
Markets’ attention is now to the Federal Reserve’s policy meeting next week to see if the Fed follows the lead of the European Central Bank, which raised rates by 0.5% last Thursday to 3%.
Investor expectations expect the Fed interest rates as early as this year. In particular, according to market expectations, the Federal Reserve should increase interest rates by 0.25% in March and May and then reduce them after that. After that, the Federal Reserve’s rate forecasts are subject to change.
Positive news for the financial sector was that the Swiss National Bank extended its significant support to Credit Suisse Group through a liquidity facility. The Swiss group said it needed 50 billion Swiss francs, and following the development, the share price increased by 20%.
However, confirming that the worries are not over yet, recent data reveal that banks have requested unprecedented amounts of emergency liquidity from the Federal Reserve in recent days, indicating the extent of the strain on the financial system.
Meanwhile, futures were mixed on Friday morning: Dow Jones futures lost 0.4% relative to fair value, while S&P 500 futures fell 0.2%. On the other hand, Nasdaq 100 futures rose by a fraction.
Also, on Friday morning, crude oil futures rallied below their pre-market highs. Copper prices increased by almost 2%.
Price lists for Friday, 17 March 2023
DOW Jones -1.19% to 31,861.98
S&P 500 -1.10% to 3,916.64
NASDAQ 100 -0.74% to 11,630.51.