šØš¢NEWS 03/21/2023: šš° US Stocks Rise as Yellen Reassures on Banking Crisis, Regional Banks Surge
- Graziano Stefanelli
- Mar 21, 2023
- 1 min read
š US stocks rose on Tuesday as investors grew more optimistic about the financial sector's outlook following Treasury Secretary Janet Yellen's reassurances to safeguard against further banking crises.
š The Dow Jones Industrial Average gained almost 1%, while the S&P 500 rose over 1% to close above 4,000 for the first time since March 6. The Nasdaq Composite added 1.58% to close at 11,860.11.
š¦ Regional banks also surged, led by First Republic, which jumped almost 30% after losing 47% the previous day. The SPDR Regional Banking ETF (KRE) gained nearly 6%. Investors were reassured after Yellen said the government is ready to provide further guarantees of deposits if the banking crisis worsens.
š° Investors are now expecting a slower pace of tightening from the Federal Reserve in light of the banking crisis. Traders currently price in an 86% chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday, according to CME Group's FedWatch tool. The probability of a pause is at 13.6%.
