Dow 100 Points to the Good, as Banking Sector Recovers
March 21,2023 12:07 pm EST
Stocks rose Tuesday, building on Monday's rally. Traders continued to become optimistic following Treasury Secretary Janet Yellen's latest reassurances to contain the banking crisis.
The Dow Jones Industrials launched 127.65 points to 32,375.09.
The S&P 500 tacked on 20.8 points to 3,972.37.
The NASDAQ Composite jumped 69.72 points to 11,745.26.
Regional banks surged Tuesday, led by First Republic. The beaten-down bank jumped 39.9%, a day after losing 47%. Regionals got a boost after Treasury Secretary Janet Yellen said Tuesday morning that the government is ready to provide further guarantees of deposits if the banking crisis worsens.
Investors now expect a slower pace of tightening from the Federal Reserve in light of the banking crisis. Traders now are pricing in a 83% chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday. The probability of a pause is at 16.6%.
Prices for the 10-year Treasury slid, raising yields to 3.57% from Monday's 3.49%. Treasury prices and yields move in opposite directions.
Oil prices regained 56 cents to $68.20 U.S. a barrel.
Gold prices stumbled $31.40 to $1,951.40 U.S. an ounce.