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Investing.com – Wall Street’s main indices rose during these trading moments on Thursday, coinciding with easing fears of a banking crisis, as investors turned to risky assets, which caused volatility in safe havens such as gold.
Investors’ attention turns to the Fed’s favorite data, which is scheduled to be released tomorrow, Friday, in search of indications of , which would move gold and the dollar.
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A second wave of deposit exodus
US Federal Reserve data just reported that the 25 largest US banks saw $120 billion in inflows in deposits in the days following the Silicon Valley crash. It was the biggest weekly drop in the dollar deposits of smaller banks ever. Meanwhile, more than $220 billion has flowed into money market funds over the past two weeks, according to data from Refinitiv.
Meanwhile, Barclays (LON:) reported that the Federal Reserve’s launch of the bank financing program, along with other funding sources, has helped US banks build up large reserves to meet the recent deposit outflows.
“While market sentiment remains fragile, our sense is that deposit outflows from small to large banks are fading as depositors realize they can access and transfer their balances without any hassle,” Joseph Abbate, interest rate strategist at Barclays, said in a note on Wednesday. Hurdles”.
However, “Abate” believes that a second wave of deposit exodus will begin, as money goes to cash funds, pointing out that depositors keep their money in banks thanks to the services provided by banks, but despite the meager returns.
stock alternative
Bank of America (NYSE:) said holding onto cash could be a winning strategy for investors this year, as turmoil in the financial sector mounts and the economic outlook worsens. In a research note, he stated that in the near term, cash is a compelling alternative to the S&P 500 index of US stocks.
Bank of America sees a limited upward path for the US stock index compared to its year-end target of 4,000 points, roughly the same as the index’s current level, while the bank believes cash offers returns of around 5%.
Recently released data
The quarterly data was issued, and it recorded a growth of 2.6%, while it was expected to record a growth of 2.7%, and it recorded a previous reading of a growth of 3.2%.
As for it, it increased by 3.9%, according to experts’ expectations, while it recorded a previous reading of 4.4%.
It recorded 198,000 applications, higher than the forecast of experts, who expected 196,000. Especially since it had recorded 191 thousand the week before last.
Thus, it rose in 4 weeks to 198.25 thousand, after it recorded 196.25 thousand the week before last.
US stock indices at the time of writing
It rose by 0.3% at 32,804 points.
It rose by 0.5%, to 4048 points.
While it jumped 95 points, or 0.8%, to record 12,019 points.
Markets at the time of writing
It rose by 0.3% at $1,970 an ounce.
While US gold futures rose 0.18% to 1988 dollars.
It rose by 0.5%, to record 101.8 points.
Benchmark crude futures rose by 0.5%, to reach 78 per barrel.
The US West Texas Intermediate crude price rose by 0.9%, at $73.6 a barrel.
