First Citizens BancShares agreed to acquire Silicon Valley Bank (SVB), which will help restore stability to the banking system. U.S. stocks rose on Monday (27th), energy and financial stocks rose sharply, and 2-year U.S. bond yields rose. They climbed more than 4 percent, even as big technology stocks held back gains for the broader market.
The four major indexes closed mixed,Dow Jones IndexReceived nearly 200 points in red, the S&P 500 index rose slightly by 0.16%,Nasdaq Composite IndexIt closed down 0.47 percent, withPhiladelphia SemiconductorThe index fell 1.21 percent. First Republic Bank plunged more than 11%.
On the political and economic front, banking stocks are surrounded by a number of positive news. Silicon Valley Bank was officially acquired on Monday. First Citizens Bank will acquire deposits and loans of Silicon Valley Bank from the Federal Deposit Insurance Corporation (FDIC), as well as other specific assets.
The U.S. government is considering expanding an emergency lending program for banks, while the flow of deposits from smaller U.S. banks to industry giants such as JPMorgan Chase & Co and Wells Fargo has slowed.
The U.S. Senate Banking Committee will hold a hearing on bank failures on Tuesday, and Federal Reserve Vice Chairman Michael Barr testified on Monday that the failure of a Silicon Valley bank was a textbook case of mismanagement. The bank failed to fix its problems for a long time, and ironically, the actions it finally took to strengthen its balance sheet triggered a run on the bank that led to its rapid collapse.
The Swiss Financial Market Supervisory Authority (FINMA) said it was considering whether to sanction the management of Credit Suisse after UBS AG’s takeover of it.
Soaring international oil prices boosted energy stocks. The latest International Chamber of Commerce (ICC) ruling that forced Iraq to halt some crude oil exports from the semi-autonomous Kurdish region, coupled with optimism about a rebound in China’s economy, is expected to boost oil demand.
U.S. regulators have warned the currency circle.The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against the world’s largestcryptocurrencyExchange Binance and its CEO, Changpeng Zhao, have been charged by the CFTC with knowingly providing unregistered futures and options contracts to U.S. traders.
The World Bank warned on Monday that a lost decade may be brewing for the global economy, but policies such as stimulating jobs, boosting productivity and accelerating investment could reverse the trend.
The Russia-Ukraine war escalated, and Russia announced the deployment of nuclear weapons in Belarus. The European Union reminded Belarus that once it accepts Russia’s tactical nuclear weapons, it will be subject to expanded sanctions.
The performance of the four major U.S. stock indexes on Monday (27th):
- US stocksDow Jones IndexIt gained 194.55 points, or 0.6 percent, to close at 32,432.08.
- NasdaqThe index fell 55.12 points, or 0.47 percent, to close at 11,768.84.
- S&P 500 IndexIt gained 6.54 points, or 0.16%, to close at 3,977.53.
- Philadelphia SemiconductorThe index fell 37.69 points, or 1.21%, to close at 3,083.57 points.
Focus stocks
The five kings of science and technology are all down. Amazon (AMZN-US) down 0.092%; Meta (META-US) down 1.54%; Apple (AAPL-US) fell 1.23%; Alphabet (GOOGL-US) down 2.83%; Microsoft (MSFT-US) fell 1.49%.
Dow JonesConstituent stocks led by IBM. IBM (IBM-US) rose 3.21%; JPMorgan Chase (JPM-US) rose 2.87%; American Express (AXP-US) up 2.09%; Nike (OF THE US) fell 2.4%.
fee halfConstituent stocks generally received black. NVIDIA (NVDA-US) down 0.93%; AMD (AMD-US) down 1.37%; Applied Materials (AMAT-US) down 0.55%; Texas Instruments (TXN-US) down 1.37%; Qualcomm (QCOM-US) down 0.93%; Micron (MU-US) down 2.24%.
For Taiwan ADR, only UMC received dividends. TSMC ADR (TSM-US) down 2.30%; ASE ADR (ASX-US) fell 1.31%; UMC ADR (UMC-US) up 0.70%; Chunghwa Telecom ADR (CHT US) fell 0.35%.
Corporate News
It is rumored that the U.S. authorities are considering expanding the size of the Fed’s existing emergency lending mechanism, which is expected to stabilize the balance sheet of Silicon Valley Bank, First Republic Bank (FRC-US) soared 11.99% to $13.82 a share on Monday, leading broad gains among regional bank stocks.
Apple recently quietly acquired WaveOne, which is developing artificial intelligence algorithms for audio and video compression. apple (AAPL-US) fell 1.23% to $158.28 per share on Monday along with the broader market.
The US media giant “Walt Disney” (Walt Disney) has launched a plan to lay off 7,000 people, the first of three rounds of layoffs will begin this week. business profit, Disney (DIS-US) climbed 1.64 percent to $95.62 a share.
Tesla (TSLA-US) closed 0.74% higher at $191.81 per share. Barclays analyst Dan Levy is bullish on Tesla. He expects Tesla to deliver about 425,000 vehicles in the first quarter, exceeding the consensus estimate of 420,000. Levy also expects Tesla to continue to reduce its electric vehicle sales. The price, promoting the prospect of both production capacity and sales.
Wall Street Analysis
Huw Roberts, head of analysis at Quant Insight, said: “People know the fundamental outlook is not good, but many people are short or long cash, or just generally stay away from US stocks. The most obvious catalyst to resolve this tug of war will be a credit crunch. new development. “
Brian Levitt, global market strategist at Invesco, said: “The expansion of the liquidity facility established by the Fed has greatly eased previous concerns about a possible run on a series of banks.”
Joe Gilbert, portfolio manager at Integrity Asset Management, said: “The market is swinging between banks and technology stocks. As banks rebounded, a lot of money was withdrawn from technology stocks that have supported the market for the past two weeks. Rising yields have poured cold water on tech stocks.”
The numbers are all updated before the deadline, please refer to the actual quotation
