Dow futures

Barron's live coverage of financial markets, from stocks and bonds to oil and crypto. Mar 13, 2023 at 9:55 am ET. Share.

Richard Saperstein, chief investment officer at Treasury Partners, disagrees.\n\n“While the Fed has historically cut interest rates following major negative financial events, such as a bank failure, efforts by regulators to bail out SVB depositors and provide loans to struggling banks will reduce systemic risk and enable the Fed to continue raising interest rates in an effort to keep fighting inflation,” Saperstein said.\n\nFebruary consumer price data will be released on Tuesday, which will be the next major catalyst for the markets.\n\n“The odds of a 25-basis point hike have risen since investors came to grips with \\[Fed Chairman Jerome\\] Powell’s higher for longer Senate testimony and SVB’s collapse, but with more than just inflation on the plate this week it remains to be seen where expectations will be by week end,” Chris Larkin, managing director of trading at E-Trade, wrote Monday. Higher rates are meant to cool high inflation by reducing economic demand, so fewer rate hikes would put less pressure on the economy.\n\nTraders were cutting their bets on interest-rate increases in the U.S. The two-year Treasury yield, a barometer for expectations about the fed funds rate, is down to below 4.1% from above 5% last week.\n\nThe bad news: bank stocks are dropping, with the KBW Bank Index falling 8.9% Monday. Treasury separately said they would make more funds available to meet demands for bank withdrawals through a new funding program.\n\nPresident Biden also spoke on Monday to assure Americans that the banking system is “safe” and that SVB’s customers will be protected.\n\nThe key silver lining, though: Since there’s still some risk to sales – or even financial positions at some other banks – markets are assuming that the Federal Reserve could move less aggressively in lifting interest rates. Bank of America (ticker: BAC) was down 2.6% and Citigroup (C) down 4.7%. and elsewhere in the fallout of SVB’s collapse, shifting expectations toward a quarter-point increase at the Fed’s March 22 meeting.\n\nTraders are currently pricing in a 64.2% chance of a 25-basis point rate hike, with 35.8% expecting no increase.

The Dow Jones reversed Monday, as the FDIC guaranteed all deposits of SVB Financial. First Republic crashed 65% on ongoing bank fears.

[AXP](https://research.investors.com/quote.aspx?symbol=AXP)) [PANW](https://research.investors.com/quote.aspx?symbol=PANW)) [CRM](https://research.investors.com/quote.aspx?symbol=CRM)) [Recent IBD Stock Of The Day](https://www.investors.com/research/ibd-stock-of-the-day/newr-stock-new-relic-boosts-data-analysis/), New Relic, is working on a flat base with a 80.98 buy point in the aftermath of the Feb. [4 Top Growth Stocks To Buy And Watch In The Stock Market Correction](https://www.investors.com/stock-lists/stocks-near-a-buy-zone/dow-jones-leader-salesforce-3-other-top-stocks-to-buy-and-watch/) [strong fourth-quarter results](https://www.investors.com/news/technology/crm-stock-salesforce-earnings-salesforce-stock-q42022/). [Five Dow Jones Stocks To Buy And Watch Now](https://www.investors.com/research/dow-jones-stocks/) [IBD Leaderboard](https://leaderboard.investors.com/#/leaders/leadersnearabuypoint) watchlist stock Palo Alto Networks continues to trade quietly in a handle after the stock's 12.5% surge on Feb. [cybersecurity giant announced good results](https://www.investors.com/news/technology/panw-stock-palo-alto-earnings-q42022/) for the January-ended quarter that saw earnings hit $1.05 a share, up 81% vs. New Relic was recently an [IBD Stock Of The Day](https://www.investors.com/research/ibd-stock-of-the-day/newr-stock-new-relic-boosts-data-analysis/). [guaranteed all deposits](https://www.wsj.com/articles/federal-reserve-rolls-out-emergency-measures-to-prevent-banking-crisis-ba4d7f98) of SVB Financial ( [SIVB](https://research.investors.com/quote.aspx?symbol=SIVB)). And after Friday's selloff we've cut our outlook further, to 'market in correction.' This requires investors to avoid any stock purchases and pivot to defensive trading, such as taking profits and [cutting losses short](https://www.investors.com/how-to-invest/investors-corner/still-the-no-1-rule-for-stock-investors-always-cut-your-losses-short/)." [TSLA](https://research.investors.com/quote.aspx?symbol=TSLA)) traded down more than 2% Monday morning after Wolfe Research downgraded the stock to peer perform from outperform. Regulators on Sunday also took control of Signature Bank ( [SBNY](https://research.investors.com/quote.aspx?symbol=SBNY)).

U.S. stock futures rallied on Monday as investors welcomed the authorities' attempts to stem banking sector angst. How are stock-index futures trading. On ...

MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. The central bank is now expected to raise borrowing costs by 25 basis points as it strives to suppress inflation running at more than three times its 2% target. Similarly, slowing credit growth means slower economy. "And the damage to Silicon Valley/VC/Start-ups means that Fed is aware there is now further forces have been unleashed to slow employment growth (Fed focus) without having to raise rates. authorities stepped in to inoculate the banking sector following the collapse of Silicon Valley Bank parent SVB Financial (SIVB) as well as Signature Bank (SBNY). "Investors are waiting with bated breath to see if this rush of regulatory activity to try and limit the fallout from the SVB bank collapse will help soothe volatile markets and so far the bold action appears to be working," Streeter added.

U.S. stock futures on Monday pointed to a mixed open, as market participants digested the fallout from the Silicon Valley Bank saga.

[PRVB](https://seekingalpha.com/symbol/PRVB)) [more than tripled in value](https://seekingalpha.com/news/3946724-provention-stock-rockets-260-on-29b-acquisition-by-sanofi) after it agreed to be bought by Sanofi ( [SNY](https://seekingalpha.com/symbol/SNY)). [continued their slide](https://seekingalpha.com/news/3946829-treasury-yields-collapse-with-the-2y-erasing-40-basis-points-and-the-10y-dropping-20) on Monday. The central bank's board said it would make [additional funding available](https://seekingalpha.com/news/3946686-federal-reserve-creates-lending-facility-for-banks-after-silicon-valley-bank-failure) to eligible depository institutions and is prepared to address liquidity pressures that may arise. The benchmark S&P 500 ( [SP500](https://seekingalpha.com/symbol/SP500)) had added 0.62% to 3,885.80 points. To get an idea of just how much rate hike expectations have been adjusted, only last week markets were seeing an 80% chance of a 50 basis point hike at the March meeting. Meanwhile, Seagen ( [SGEN](https://seekingalpha.com/symbol/SGEN)) surged after a [deal](https://seekingalpha.com/news/3946759-pfizer-deal-to-acquire-seagen-sends-shares-higher) to be acquired by Pfizer ( [PFE](https://seekingalpha.com/symbol/PFE)). 'While the Fed wants tighter financial conditions to restrain aggregate demand, they don’t want that to occur in a non-linear fashion that can quickly spiral out of control, perhaps to the detriment of the taxpayer. And while they want credit to become more expensive, they shouldn’t want creditworthy borrowers to be shut out at any price. history after the 2008 cratering of Washington Mutual. SVB's closure marked the second-largest bank failure in U.S. Financials slipped nearly 3% and topped the losers. Markets are now pricing in a decent chance that there might be

Live updates of what's moving markets, including the Dow, S&P 500 and Nasdaq Composite.

Futures on the Dow Jones Industrial Average (DJIA) are down 203 points ahead of the open, while S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) futures ...

Despite HSBC stepping in to buy the British leg of SVB for $1.21, European markets are still lower as bank stocks take a beating. - Charles Schwab Corporation (NYSE:SCHW) is down 10.2% in electronic trading, as bank stocks continue their fall, despite an upgrade from Citigroup to "buy" from "neutral." The shares are down 2% before the bell. The single-session equity put/call ratio rose to 1.11 and the 21-day moving average jumped to 0.79. Meanwhile, Wall Street's "fear gauge," the Cboe Volatility Index (VIX) is continuing to soar, last seen up 5 basis points. regulators announced plans to ensure depositors have access to their SVB funds today, however, the bounce appears to have been short-lived.

US stock futures were holding steady Monday after an extraordinary move by US financial regulators to restore confidence in the country's banking system.

The massive tech lender had faced liquidity concerns, which triggered a huge bank run, ultimately leading to [the second-largest failure](http://edition.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html) of a financial institution in US history. [(N225)](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link) index, which closed 1.1% down. South Korea’s Kospi [(KOSPI)](https://money.cnn.com/data/world_markets/kospi/?source=story_quote_link) initially fell in morning trade, before reversing course to stand 0.7% higher. SVB was hugely important to the technology industry for decades, specializing in providing funding to startups. [(HSI)](https://money.cnn.com/data/world_markets/hang_seng/?source=story_quote_link) closed up 2%, while the Shanghai Composite [(SHCOMP)](https://money.cnn.com/data/world_markets/se_composite/?source=story_quote_link) was 1.2% higher. Gruenberg said the FDIC will make SVB and Signature Bank’s customers whole. [stunning and rapid](https://edition.cnn.com/2023/03/11/business/svb-bank-collapse-explainer-timeline/index.html) turn of events. [(SCBFF)](https://money.cnn.com/quote/quote.html?symb=SCBFF&source=story_quote_link), which is headquartered in London but makes most of its money in Asia, dropped 0.6% in Hong Kong. [(FTRXX)](https://money.cnn.com/quote/mutualfund/mutualfund.html?symb=FTRXX&source=story_quote_link) Monday that it had bought [the UK arm of SVB](https://edition.cnn.com/2023/03/13/investing/svb-uk-business-deal-intl-hnk) for £1 ($1.2), saying the business’s customers could “continue to bank as usual” and that their deposits were safe. [a heavy rout](https://edition.cnn.com/2023/03/10/investing/us-bank-stocks-sell-off-fallout/index.html) for their US and European counterparts late last week. [(SXXL)](https://money.cnn.com/quote/quote.html?symb=SXXL&source=story_quote_link) dropped 2.5% Monday morning, while London’s FTSE 100 [(UKX)](https://money.cnn.com/data/world_markets/ftse100/?source=story_quote_link) lost 2.2%. [restore confidence](https://www.cnn.com/2023/03/12/investing/svb-customer-bailout/index.html) in the country’s banking system.