📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

U.S. stocks are rising ahead of the Fed's rate decision

Published 03/20/2023, 09:51 AM
Updated 03/20/2023, 11:56 AM
© Reuters.

By Liz Moyer 

Investing.com -- U.S. stocks are rising on Monday after the weekend's $3.2 billion tie-up of UBS and Credit Suisse as banking regulators raced to shore up confidence in the system.

At 11:53 ET (15:53 GMT), the Dow Jones Industrial Average was up 342 points or 1.1%, while the S&P 500 rose 0.7% and the NASDAQ Composite rose 0.1%.

Wall Street is wondering how much the turmoil in the banking sector is going to weigh on the economy, and how much the Federal Reserve will factor in the events of the past two weekends when it decides on interest rates this week.

Futures traders are largely expecting the Fed to raise rates by a quarter of a percentage point, while just about 25% of traders are betting on a pause.

UBS Group AG (NYSE:UBS), with the backing of Swiss banking regulators, came to the rescue of its rival in the hope it would stabilize conditions. Shares of Credit Suisse Group (NYSE:CS) sank 54% on Monday, while UBS rose 3.3%.

But investors were still wary about corners of the banking sector. First Republic Bank (NYSE:FRC) shares fell 25.8% after ratings cut by S&P Global.

The Fed and five other central banks began offering daily instead of weekly currency swaps starting today and going through April to ease concerns about the flow of dollars available in the system.

In addition to the Fed decision, the policymakers will release their latest dot-plot projections on aspects of the economy on Wednesday, including their outlook for unemployment and economic output.

This week also brings economic data on existing home sales and jobless claims.

Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) fell 17.95% after saying it would seek shareholder approval for a reverse stock split.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.