On Tuesday, the leading stock market indices on Wall Street opened up, and the optimism remained throughout the evening and it gradually caught fire in the rush:
- Industry-heavy Dow Jones ended up 0.98 percent.
- The broad composite index S&P 500 rose by 1.31 percent.
- The technology index Nasdaq ended up 1.58 percent.
Yesterday ended with a nice stock market rise in the USA, but with a sharp fall for the American bank First Republic Bank, where the share price was almost halved during the trading day. It came after several days of bank uros.
On Tuesday, shares in First Republic Bank rose by almost 30 per cent, and bank shares in general also got a nice boost, for the second day in a row. In the last couple of days, particular attention has been focused on smaller banks and regional banks, and these had a good day on the stock exchange on Tuesday after Finance Minister Janet Yellen will increase support for this type of bank, if necessary.
Tesla rose by almost eight percent after receiving an updated credit rating from Moody’s, reports CNBC. The company now has a Baa3 rating.
The oil price also pushed a little higher on Tuesday evening to well over 75 dollars a barrel for North Sea oil.
Interest rate rush
Investors are eagerly awaiting yet another interest rate decision from the US central bank (Fed) on Wednesday.
Barely two weeks ago, the market priced in a double interest rate hike, after central bank governor Powell stated in a hearing on Capitol Hill that the interest rate peak will probably be higher than expected.
Since the banking crisis occurred, the market has broken expectations, and shortly after the bank collapses, many people doubted whether there would even be an interest rate increase at Wednesday’s meeting. During yesterday, interest rate expectations picked up, and now the market is pricing in a 70 percent probability that the Fed will raise interest rates.
Bankuro
Fears of the collapse of Silicon Valley Bank, which was put into receivership, quickly spread to several banks last week. Both the American banks Silicon Valley Bank and Signature Bank have closed their doors for good within one week.
Over the weekend, the major Swiss bank was also acquired by rival UBS for 3.25 billion dollars. Then it also became clear that bondholders in Credit Suisse will lose around NOK 185 billion after the scandal-hit bank was sold to rival UBS on Sunday.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.
