US stock market stable after banking chaos and phase of weakness and with significant gains Floods in California: this man has been saved

The stabilization of the US stock markets continued on Tuesday after a short period of weakness. The leading index Dow Jones Industrial closed 1.06 percent higher at 32,155.40 points.

The market-wide S&P 500 eventually rose 1.68 percent to 3920.56 points. The day before, both indices had significantly reduced their close-of-trade losses. The tech-heavy Nasdaq 100, which closed higher on Monday, rose another 2.32 percent to 12,199.79.

In the banking sector, the securities of some regional banks, which have been under heavy pressure recently, recovered significantly. Growing hopes that the US Federal Reserve would curb interest rate hikes proved to be a boost for both banks and the market.

There are calls for monetary authorities to interrupt the cycle of rate hikes at next week’s meeting. The analysts of the Japanese financial group Nomura even expect a policy interest rate cut of 0.25 percentage point.

Don’t be afraid of a tighter monetary policy

In any case, the latest inflation data from the United States did not fuel fears of a tighter monetary policy: in February, consumer prices rose, as expected, by only six percent year-on-year, the lowest increase since September 2021.

As a result, the Fed no longer needs to accelerate rate hikes, according to VP Bank economist Thomas Gitzel. The Fed will raise interest rates by 0.25 percentage point in March. “After that it’s over,” he expects.

Shares in First Republic Bank rallied 27 percent on Tuesday, while Western Alliance Bancorp and Pacwest Bancorp rose more than 14 percent and about a third, respectively. The titles of national industry giants such as Dow members JPMorgan and Goldman Sachs, as well as Bank of America, Citigroup and Wells Fargo, which are represented in the S&P 500, also increased. The collapse of the Silicon Valley Bank last week was the most recent collapse of US banks since the 2008 financial crisis.

Price increase at Meta after announcement of decommissioning

At Meta, shareholders welcomed a price increase of 7.3 percent and the top spot in the Nasdaq 100 after the Facebook parent company announced that it would cut about 10,000 more jobs. In addition, about 5,000 vacancies are unfilled, company founder and CEO Mark Zuckerberg announced.

Shares in chemical retailer Univar Solutions even rose 12 percent to $34.91 thanks to a takeover bid from Apollo Global. The financial investor wants to put $36.15 per Univar share on the table, which values ​​the company at $8.1 billion including assumed debt. Apollo shareholders apparently appreciate the deal, as evidenced by the nearly two-and-a-half percent increase in Apollo shares.

Plus with Uber and Lyft

The fact that a court ruling labeled drivers who worked for driver services providers Uber and Lyft as self-employed caused their paperwork to increase by five and 0.6 percent, respectively. Conversely, shares of United Airlines fell nearly 5.5 percent following the airline’s disappointing quarterly outlook.

Amgen shares were down 1.1 percent at the bottom of the Dow in the strong market. The complaint of a pension fund, which accuses the biotech company of informing investors too late about possible additional assessments and fines totaling over ten billion dollars, weighed heavily here.

Pfizer with a slight plus

At the end of the day, Pfizer posted only a slight increase after rating agency Moody’s downgraded the outlook for the pharmaceutical company’s credit rating to negative. Earlier this week, it was announced that Pfizer would acquire cancer specialist Seagen for $43 billion.

The euro was almost flat at $1.0735. The European Central Bank (ECB) had set the reference rate at 1.0737 (Monday: 1.0706) dollars and the dollar thus cost 0.9314 (0.9341) euros.

US Treasuries paid tribute to their recent rally, with the 10-year T-Note future falling 0.95 percent to 113.56 points, which in turn pushed the yield on 10-year Treasuries to 3.68 percent. (sda/dpa)