Tuesday was a bull day for US stocks. The DOW Jones gained 316 points to +0.98% to 32,560.60, the S&P 500 +1.30% to 4,002.87, and the NASDAQ 100 +1.58% 11,860.11.
The Dow Jones Industrial Average soared nearly 400 points on Monday ahead of the upcoming Federal Reserve meeting.
Despite reports that First Republic Bank (FRC) may seek assistance from JPMorgan Chase (JPM) to remain solvent, its shares have declined. FRC shares fell more than 47% on Monday to close at 12.18 despite receiving more than $30 billion in liquidity facility.
S&P 500 sectors were positive on Tuesday, with the Nasdaq outperforming other significant indices to finish the day up 1.30%.
At the start of the week, the stock market rallied on traders’ optimistic outlook on easing the banking sector crisis. This market surge followed intervention by the Swiss government, which orchestrated UBS’s takeover of Credit Suisse.
Regional banks rebounded after posting significant losses the previous week. Industry experts believe further steps may be needed to rebuild confidence in the banking system, as recent decisions by US regulators to deny the SVB non-insurance deposits and provide financial support to troubled banks have raised concern.
On Tuesday morning, the Asian markets were also traveling in positive territory after the good closures of Wall Street and the European markets. Hong Kong was up nearly 1% in the morning, and Shanghai was up 0.45%. Gold was stable at $1,891 an ounce. US WTI oil, on the other hand, fell by 0.68% to 67.18 dollars a barrel.
Meanwhile, after the Swiss government’s merger between UBS and Credit Suisse, the US Treasury is reportedly working on a plan to extend insurance coverage to all deposits, including those over $250,000. The idea has been circulating for a few days in Washington, with Senator Elizabeth Warren launching an appeal for everyone to assist.
The banking sector is also in favor of this proposal. When asked about this possibility, a White House spokesman said it would use all available resources to shore up local banks. On Tuesday morning, futures. The 10-year Treasury was trading at 3.460, down 0.48%.
Immediately after markets opened on Tuesday, shares rallied, following on from the previous day. Traders remained optimistic about Treasury Secretary Janet Yellen’s latest reassurances about the banking crisis. The Dow Jones Industrial Average was up 0.6%, or 207 points, while the S&P 500 and Nasdaq Composite rose 0.7% and 0.3%, respectively.
Price lists for Tuesday, 21 March 2023
DOW Jones +0.98% to 32,560.60
S&P 500 +1.30% to 4,002.87
NASDAQ 100 +1.58% at 11,860.11.