On Monday, the stock future increased slightly, putting Wall Street effective to develop on last week’s gains.
The moves arose after Wall Street ended the week on a successful note despite unpredictability concerning the Federal Reserve interest rate increase and the ongoing bank crisis. The Nasdaq Composite led the biggest indexes with an increase of 1.7%. The S&P 500 ended the week with an increase of 1.4%, and the Dow increased by 1.2%.
The central bank declared a quarter-point rate hike, broadly in line with Wall Street’s expectations, and hinted that an end to rate hikes might be in sight.
The chief investment officer for Commonwealth Financial Network, Brad McMillan, remarked that the rate increase appeared to be as dovish as possible, and markets were not necessarily pleased but not disappointed either. Although Fed was okay with the market, the ongoing turmoil in the banking system was even more important.
During the week, the health of the US banking system weighed massively on the investors, with particular attention paid to PacWest, First Republic, and other regional financial institutions. Over the weekend, CNBN reported that deposit effusion from small banks to industry giants like Wells Fargo and JPMorgan Chase had slowed down recently.
The US deposit insurance company Federal Deposit Insurance Corporation announced overnight that First Citizens Bank had also agreed to buy a large part of Silicon Valley Bank (SVB). The transaction involves the acquisition of around $72B of SVB assets at a $16.5B discount. Still, approximately $90B in securities and other assets remain “on deposit and available to the FDIC disposal.”
Jerome Powell, the Federal Reserve Chair, and Janet Yellen, the Treasury Secretary, have reassured the investing public that the US banking system is still dependable and backed up through a commentary published in the past week.
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