Wall Street started trading on Tuesday in green and the Dow Jones Industrials, its leading indicator, gained 1.04% supported by the financial sector which rebounded after jittery days amid the collapse of Silicon Valley Bank (SVB) and coinciding with inflation data in the United States in February.
Ten minutes after the start of trading on the New York Stock Exchange, the Dow Jones gained 331.99 points, to 32,151.13 units, while the selective S&P 500 rose by 1.52% or 58.46 whole points, to 3,914. 22 points.
The composite index of the Nasdaq market, where the leading technology companies are listed, rose 1.83% or 204.94 units, up to 11,393.78 integers.
The floor of Wall Street tried to shake on Tuesday five days of nerves and tension since the shares of the Californian bank SVB plunged last Thursday, which the next day it was closed by the US authorities, and which affected the entire financial system with repercussions on the entire economy.
The banks most affected by the intervention of the SVB and the Signature Bank, which closed last Sunday, rebounded strongly on Tuesday after seeing how his stock was sinking in recent days, while various credit bureaus like Moody’s have reported them as possible candidates for new closures.
Thus, First Republic was up 48% after opening, Western Alliance Bank was up 43%, PacWest was up 53%, Comerica was up 11%, and Zions was up 15%.
In the same way that the big financial firms were weighed down by the downturns of these banks, they also joined the upswing this Tuesday and in the morning JPMorgan Chase shares are up 1.57%, Bank of America rebounded 2.93%, Citigroup 5.27%, Wells Fargo 5.1% and US Bancorp 4.3%.
Inflation
The Bureau of Labor Statistics (BLS) has announced the year-over-year inflation rate in the United States continued to decline in Februaryfor the eighth consecutive month, and stands at 6%, four tenths less than in January.
However, in monthly terms, consumer prices have risen four-tenths, at a time when the Federal Reserve (Fed) faces close scrutiny for its measures to curb inflation, and more now after the SVB bank debacle and fears of a banking crisis.
At the sector level, the gains of financials (2.36%) and communications (2.26%) stand out, followed by raw materials (negative 1.96 days).
Among the 30 Dow Jones stocks, the most favored companies were Salesforce (4.4%), American Express (3.43%) and Goldman Sachs (3.19%), while only three opened in the red with Travelers (- 0.61).
EFE extension
Source: Clarin
Mary Ortiz is a seasoned journalist with a passion for world events. As a writer for News Rebeat, she brings a fresh perspective to the latest global happenings and provides in-depth coverage that offers a deeper understanding of the world around us.