Futures Try to Build on Monday Rally
March 21,2023 08:34 am EST
Stock futures rose Tuesday as traders tried to add to a rally from the previous session that was sparked by hope that the banking turmoil would be contained.
Futures for the Dow Jones Industrials shot higher 288 points, or 0.9%, early Tuesday to 32,744.
Futures for the S&P 500 hiked 36 points, or 0.9%, to 4,019.
Futures for the NASDAQ Composite jumped 93.75 points, or 0.7%, to 12,782.25.
Regional banks surged in early trading, led by First Republic. The beaten-down bank jumped 21.9%, 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%.
In Japan, markets were closed for holiday Tuesday, while in Hong Kong, the Hang Seng regained 1.4%.
Oil prices recovered 96 cents to $68.60 U.S. a barrel.
Gold prices sank $13.30 to $1,969.50 U.S. an ounce.
Currencies