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Stock market today: Dow adds 300 points as bank rally fueled bets on Fed move

AuthorLiz Moyer
Published 03/14/2023, 04:10 PM
Updated 03/14/2023, 04:20 PM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks ended higher as a rally in bank stocks put aside worries that the trouble in the banking sector would wind up becoming a contagion. 

At 16:05 ET (20:05 GMT), the Dow Jones Industrial Average closed up 336 points or 1.1%, while the S&P 500 was up 1.7% and the NASDAQ Composite was up 2.1%.

Also lifting the mood in the markets: The Bureau of Labor Statistics reported a 0.4% rise in the consumer price index in February from the previous month, cooling slightly from January’s reading. On an annual basis, inflation rose 6%, also cooling from the prior reading. Core prices, which exclude food and fuel, rose 0.5% from the prior month, slightly more than expected.

That is leading traders to put more bets on a smaller rate hike by the Federal Reserve next week.

Most futures traders are expecting a quarter of a point rate hike next week, though 26% of traders are betting on the Fed to pause rate hikes, according to CME’s FedWatch tool. 

The collapse of Silicon Valley Bank (NASDAQ:SIVB) over the weekend rippled through bank stocks on fears of a wider contagion. Regulators have stepped in to backstop depositors of SVB and Signature Bank (NASDAQ:SBNY), which also shut down.

Shares of large regional banks sank on Monday but were rebounding on Tuesday. KeyCorp (NYSE:KEY) closed up 7%. Comerica Inc (NYSE:CMA) was up almost 4%, while PacWest Bancorp (NASDAQ:PACW) was up almost 34%. First Republic Bank (NYSE:FRC) was up 27%.

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Stocks’ afternoon climb was temporarily interrupted by reports a Russian fighter jet struck the propeller of an American surveillance drone over the Black Sea, causing U.S. forces to down the drone in international waters.

Meta Platforms Inc (NASDAQ:META) is cutting another 10,000 workers, incurring charges of as much as $5 billion, and warned about the possibility of economic uncertainty sticking around. Shares rose 7%.

Shares of AMC Entertainment Holdings Inc (NYSE:AMC) sank 15% after shareholders of the largest movie theater chain voted to approve a reverse stock split and the conversion of APE equity units into common shares. The matter is also before a Delaware Chancery Court judge.

Latest comments

Bank rally is classic Dead Cat Bounce.
consumer spending, in lower class consumers it's just trying to survive affording rent, food, lights, water, gas....and praying for a miracle if anything unexpected like car repair happens. spending every penny to do just the basics. so those consumers I would not count on because they sacrifice on smaller and necessary instead of quantity. example they buy a half gallon of milk to buy 1 dozen eggs when they used to buy 2 1/2 dozen eggs and a gallon of milk. its really hard even with side hustles friends.
No inflation in india
Consumer spending is a key driver of economic growth.
So let me get this straight. CPI comes in harder than expected. But if CPI came in .1 lower than expected, the market would be up 10%? This bubble must be burst. Nothing and I mean zero stocks are priced correctly. $200 a share times 15X is 3000 s&p. Econ 101. You raise the fed funds rate above the inflation rate. Until the federal reserve goes that we will never have lower inflation regions got rid of eliminated all of the work we did with QT. Back to 9 trillion on the books. It doesn’t even take a 10 year old to understand is the biggest bubble I’ve seen in my 40 years investing. Pop goes the weasel any day. The market should’ve been down 5% today. But it s gna come in one big shot.A circuit breaker day. Shut down 20% down one day. If the fed does not continue to do what is needed, then you can expect double digit inflation. Any time now which it really is. Real inflation in this country is 50% plus. So investing off of hope.and wishful thinking! Your gna loose all your money. GSM
"So let me get this straight. CPI comes in harder than expected..." No. You don't have that straight.
And the Robinhood and Reddit will shoot themselves tomorrow
China is laughing at the USA right now
please don't laugh at us..
fluxation is stribbing world opp.
in they will grow !! home base is more important then fighting each other when ur not there I'm sure they got underctroll.
who is pumping liquidity into the markets just now?
Robinhood and Algos
The criminal manipulation gets more flagrant by the day as their desperate attempt to keep the US Ponzi Scheme inflated is palpable.  When is the last time you saw a 300+ point move to the negative "in late trade?"  BIGGEST INVESTMENT JOKE IN THE WORLD.
If Fed pivots inflation will go to the moon. We're going to find out if JPOW is serious or if we're going to be a banana republic.
I vote banana republic
Call of you Young People should look up Arthur Burns. Don’t call JP by his name. His REAL name is Jay Burns. They have zero bravery. 25 or even 50 basis points does nothing for inflation. This is just like the 1970s. I bet 99% of the people on here who have no idea who Arthur Burns is. Look him up. It took Mr. Volcker doing the right thing to get inflation gone. That’s raising the fed funds rate ABOVE THE INFLATION RATE. it’s so freaking easy. It’s economics 101.
IB analysts claimed banks collapse will cause financial instability but so much liquidity are pump unto stock market...., even blamed the Feds interest hike for the blood sucking greedy banks collapse
Tip of the iceberg folks. Banks will continue to collapse. Get your money out while you still can and accumulate precious metals
hoax ....hahaha
there is no bank crisis. only startups failed to pay back
Getting your money out of FDIC accounts makes as much sense as buying 9 months of toilet paper and water in 2020. Self-defeating and ironic. SVB had terrible risk and didn't hedge. #deservedtofail
Silicon Valley Bank shareholders are the biggest losers due to many factors, including the shorting of the company stock (SIVB).
Not seven times but seventy-seven times. This is how many times you must forgive your brother according to Jesus. Matthew 18:21-35
jim I agree. company's already being sued, so hopefully it will have consequences for those greedy incompetent fools too..
Maximus..I didn't hear that, thanks for the update.
Once inflation had gone above 5% it had never come back down without the Fed Fund rate exceeding the CPI - Stan Druckenmiller. Lingering inflation, possible hyperinflation is by far more damaging to the economy and the average American than anything else. People need to realize that and act accordingly.
Banks downgraded, Oil falls hard on economic fears, Stock Markets goes up, does that make sense? No!
Funny Money
PPI, CPI, bailouts, inflation, wars, removing debt ceilings, rate hikes, unemployment, tumbling oil prices, Moody's ratings, looming banking crisis. Everything has become trivial. What on earth is going on here?
Absolute fear of breaking down and breaking the trend to 2019 levels. That's the next stop.
MMT and FED meddling. Capitalism and creative destruction have all but disappeared
what's going on? massive manipulation that will end in an epic rug pull
Banks stopping businesses with gun and oil companies and banning conservatives from their banks along with inflation, interest rate hikes and massive democrat spending and there you have it, the banks crash. Democrats did it on purpose or just flat out ignorance?
another one, Brad https://www.lawenforcementtoday.com/banks-refusing-to-do-business-with-people-who-do-work-for-i-c-e/
 Its amazing how you will get on your knees for your masters even at the cost of losing your savings.  You need to be deprogrammed.
Thanks for the links. I see a distinction between "conservatives" and advocates for violence. So I'm not up in arms about a private enterprise choosing not to provide financial services to the examples provided. But, if you think companies should be directed to provide services in some equitable matter as directed by legislation, that's probably a good idea. Just don't get too woke on us.
Should read: " Stock market today: Dow adds 300 points as bank rally fueled by Fed"
omg this is effn CRIMINAL and in broad daylight. Authorities and Government colluded on the greatest PONZI SCHEME there's ever been.
So Dow 50,000 by 2024?
with inflation moving sideways!
bears in shambles
It's a massive bubble that won't end well
what a turmoil!
Nancy Pelosi getting played by Jeremy Powell
excellent!
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