As of press release, the three major indices had mixed ups and downs. The S&P 500 index rose 0.27%, the NASDAQ fell 0.37%, and the Dow rose 0.69%.

After the Bank of Silicon Valley went out of business on March 10, regional bank stocks were still under pressure to support their deposit base.

The market believes that the government may need to do more to restore confidence in the banking system after US regulators backed Silicon Valley Bank's uninsured deposits and provided fresh capital to the troubled bank a week ago.

The turmoil in the financial industry over the past two weeks has increased the risk of the Fed's interest rate decision this Wednesday. The Federal Reserve will hold a monetary policy meeting this week and announce its decision on Wednesday.

According to CME data guided by federal funds futures contracts, as of Monday morning, the probability that the Federal Reserve would raise interest rates by 25 basis points was about 57%, and the probability that it would not raise interest rates was 38%.

As financial market turmoil is rapidly spreading, many expect that Federal Reserve Chairman Powell may begin to ease the aggressive austerity campaign that began in March 2022.

Goldman Sachs doesn't expect the Federal Reserve to raise interest rates this week.The bank expects the FOMC to suspend interest rate hikes at this week's meeting due to pressure on the banking system. Although policymakers have taken positive steps to bolster the financial system, the market doesn't seem fully convinced that these efforts to support small and medium-sized banks are sufficient.

Goldman Sachs said that although this means that the fight against inflation has been suspended, the inflation issue does not seem as urgent as last summer, because short-term inflation expectations have dropped drastically, and long-term inflation expectations have remained stable.

The Swiss Bank Group agreed to buy its rival Credit Suisse for 3 billion Swiss francs (about 3.23 billion US dollars) and agreed to bear a loss of 54 billion US dollars. The newly merged banks have more than $5 trillion in assets.

According to reports, Swiss regulators forcibly intervened and arranged this deal to prevent the confidence crisis caused by the Credit Suisse storm from spilling over into the wider financial system. The deal is expected to close by the end of this year.

Shortly after UBS announced the acquisition agreement, the Federal Reserve announced that it had jointly carried out liquidity operations with other central banks. A number of central banks, including the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank, have agreed to increase the frequency of dollar swap quota arrangements from weekly to daily, starting on Monday March 20, and continuing at least until the end of April this year.

Meanwhile, Michael Wilson, a famous big bear and an analyst at Morgan Stanley, warned that investors misinterpreted the bailout of Silicon Valley bank depositors and that they should not buy stocks.

Wilson said, “From a stock market perspective, the events of the past week mean that the events of the past week have had a profound impact on the economy. Credit availability is declining. This may be a problem that ultimately convinces market participants that the return on risk (ERP) of stocks (ERP) is too low.”

Wilson believes that Wall Street's rise last week came from the confusion of US officials. “We think this is similar to what we've heard from some clients that the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) bailouts for savers are essentially a form of quantitative easing (QE) and provide an opportunity for higher bonds,” he said.

He also said that the pressure on the banking system may mark the beginning of the end of the US stock bear market, but the process will be painful and “vicious.”

Individual stocks in focus

The majority of Star Technology stocks have declined.Netflix and Amazon fell nearly 2%, while Tesla, Microsoft, Nvidia, etc. fell more than 1%.

The rise and fall of popular Chinese securities has been mixed.Pinduoduo fell more than 15%, Shell fell more than 6%, Xiaopeng fell more than 3%, Alibaba and Jingdong fell more than 1%, and Bilibili rose more than 4%.

$UBS Group (UBS.US)$An increase of more than 7%,$Credit Suisse (CS.US)$Falling more than 47%, the Swiss federal government announced that the UBS Group will buy Credit Suisse for 3 billion Swiss francs, which is 40% off the market value of Credit Suisse on March 17.

S&P will$First Republic Bank (FRC.US)$The stock rating was downgraded to “junk grade,” and said that the bank's recent $30 billion deposit injection from 11 major banks may not solve its liquidity problems. As of press release, First Republic Bank's decline has narrowed to less than 11%.

$New York Community Bancorp (NYCB.US)$An increase of more than 33%. The bank said on Monday that according to the agreement reached with the US Federal Deposit Insurance Corporation (FDIC), the bank has acquired assets of about 38 billion US dollars of signature banks and will also bear about 36 billion US dollars in liabilities.

After Pinduoduo's performance, it fell more than 15%, and Q4 revenue was 39.82 billion yuan, falling short of expectations.

Editor/Somer