"The poor performance underneath the surface of the major market indices coupled with a near oversold condition in our key tactical indicators may be setting the stage for a sharp rally," Dwyer wrote. While that could mean a "sharp rally" up ahead, the analyst said investors should remain on the defensive as markets could retest October lows. The analyst cited the Equal Weighted SPX and the Russell 2000, both of which have given back this year's gains As of Monday trading, they're off by 1.4% and about 0.7% in 2023, respectively. The S&P 500 has remained resilient in the wake of ongoing banking concerns, but other markets are under "significant pressure," according to analyst Tony Dwyer in a Monday note. Some indicators are flashing near-oversold conditions, but investors should stay on guard ahead of this week's Federal Reserve meeting, according to Canaccord Genuity. Lea la cobertura del mercado de hoy en español aquí.Ĭorrection: The Wealth Alliance's Eric Diton said, "People who are holding uninsured deposits at regional banks are nervous and the banking system is based on confidence and trust." An earlier version of this story misstated his quote. So whether they do nothing, or they raise 25 basis points, I think there's a good chance that they may very well sit and wait after that," added Diton. It does the Fed's work trying to slow down the economy. "That's much tighter capital for the whole economy. Regional banks, which account for maybe around a third of all lending in the United States, now going to have to pull back on lending to shore up their balance sheet," Diton said. "We're still not feeling the full effects. The other roughly 27% is in the no-hike camp, anticipating that Chairman Jerome Powell may start to ease his aggressive tightening campaign that began in March 2022, in the face of the emerging financial contagion. As of Monday, there was about a 73% chance of a quarter-point increase by the Fed, according to CME Group's FedWatch tool. The instability in the financial sector over the past two weeks raises the stakes for the Federal Reserve's interest rate decision on Wednesday. You're not going to put your life savings somewhere, if you're not 100% confident that it's going to be there when when you need it." "People who are holding uninsured deposits at regional banks are nervous and the banking system is based on confidence and trust. "There's just a fundamental issue here," said Eric Diton, president and managing director of The Wealth Alliance. The ETF rose 5% at one point during the trading session, but saw some of its gains reverse as First Republic shares fell 47%. PacWest, First Citizens and Fifth Third Bancorp were among the major gainers. The SPDR Regional Banking ETF (KRE) gained more than 1% after tumbling 14% last week. regulators backstopped SVB's uninsured deposits and offered new funding for troubled banks. Wall Street expects more action may be needed to restore confidence in the banking system after U.S. Regional banks rose on Monday, rebounding from big losses in the past week. The Nasdaq Composite gained 0.39% and closed at 11,675.54. Meanwhile, the S&P 500 rose 0.89% to end the session at 3,951.57. The Dow Jones Industrial Average jumped 382.60 points, or 1.20%, to close at 32,244.58. The gains followed a forced takeover of Credit Suisse by UBS engineered by the Swiss government. Stocks closed higher on Monday as traders grew hopeful that a crisis in the banking sector may be easing. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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