On the evening of the 21st Beijing time, US Treasury Secretary Yellen's speech on the increase to prepare to bail out troubled banks pushed bank stocks to generally rise. The market is hopeful that the banking crisis will be contained.
The three major US stock indices rose collectively. As of press release, the S&P 500 index rose 1.02%, the NASDAQ rose 0.98%, and the Dow rose 0.9%.
US Treasury Secretary Yellen said Tuesday morning that if the banking crisis worsens, the government is prepared to provide further deposit guarantees. Yellen's speech gave regional bank stocks a boost.
Yellen said that the new Federal Reserve instrument, discount window loans, is providing liquidity to the banking system, and the banking system is stabilizing.
She said the actions of the US Treasury, the Federal Reserve, and the US Federal Deposit Insurance Corporation (FDIC) have reduced the risk of bank failures, and the failure of these banks may cause damage to deposit insurance funds. If smaller financial institutions face deposit fraud, and there is a risk that such crowding will spread, similar actions can be taken to protect savers.
Yellen said the measures to protect Silicon Valley banks and signatory bank depositors were aimed at protecting the US banking system rather than specific banks or bank classes.
Starting Tuesday, the Federal Reserve will hold a two-day March monetary policy meeting in Washington and announce the results of the meeting on Wednesday. Federal Reserve Chairman Powell will deliver a speech after announcing the results of the meeting on Wednesday.
In light of the current European and American banking crisis, this FOMC meeting will receive additional attention from the market. Coupled with the high inflation problem that the Federal Reserve has yet to resolve, the FOMC's policy action space will be even more limited.
Investors now generally expect the Federal Reserve to slow down the pace of austerity. According to CME's FedWatch tool, traders now expect an 83% chance of the Federal Reserve announcing a 25 basis point rate hike at this meeting, and a 16.6% chance of not raising interest rates.
J.P. Morgan expects the Federal Reserve to raise interest rates by 25 basis points on Wednesday, and believes that this year's stock market high will be in the first quarter. However, the bank said that investors can take advantage of market fluctuations to sell stocks when a rebound may ease. The bank's strategists advised investors to reduce their holdings of value stocks and remain defensive in their portfolio allocations.
Individual stocks in focus
Star Technology stocks have risen collectively,Tesla rose more than 3%, Nvidia rose more than 1%, and Apple and Microsoft followed suit.
Most of the popular Chinese securities firms have strengthened.Xiaopeng Motor rose nearly 10%, NIO rose more than 5%, Alibaba rose more than 2%, and Pinduoduo followed suit.
Regional bank stocks are rising,First Republic Bank rose more than 24%, PacWest Bancorp and Alliance Western Bank rose more than 10%, New York Community Bank rose more than 5%, and Deutsche Bank rose more than 6%.
The new energy vehicle sector in the US stock market picked up at the beginning of the session.Xiaopeng Motors rose nearly 10%, Lucid rose more than 6%, NIO rose more than 5%, and Tesla and Ideal Motors rose more than 4%.
$Tesla (TSLA.US)$Up 3%. According to data released by the European Automobile Manufacturers Association (ACEA), Tesla's number of new car registrations in EU countries in February reached 19,249, an increase of about 49.7% over the 12,860 cars in the same period last year, with a year-on-month growth rate of 1.73%.
$Meta Platforms (META.US)$It rose more than 2%, and Daimo raised the company's rating from wait-and-see to increase its holdings. The target price was adjusted from 190 US dollars to 250 US dollars.
Editor/Somer