(News Bulletin 247) – The US equity markets rose sharply on Tuesday, against a backdrop of dissipation of fears surrounding the evolution of the SVB file and inflation figures considered generally reassuring.
At the end of the morning, the Dow Jones resumed 1.5% to 32,288.3 points while the Nasdaq Composite granted an increase of almost 2.5% to 11,462.8 points.
Investors seem to be timidly regaining risk appetite as concerns about the health of the US banking system begin to fade.
As in Europe, US markets assume that the series of bankruptcies that have affected several small US banks, starting with Silicon Valley Bank (SVB), will have only limited implications.
Banks are benefiting from this alleviation of concerns, with a 2.1% rise for the S&P sector index, which is one of the best performances of the day.
At the same time, the CBOE’s volatility index VIX, considered a barometer of risk aversion, fell by 15% to return to its lowest level since the onset of the crisis.
Investors’ optimism has also been bolstered by economic indicators supporting the idea that disinflation is underway for good, which could lead the Federal Reserve to slow down its monetary tightening cycle.
Over one year, the so-called ‘CPI’ index thus posted an increase of 6%, its lowest level since September 2021, compared with a figure of 6.4% in January.
Excluding energy and food products, inflation accelerated slightly last month to stand at 0.5% month on month, while the consensus was expecting it at 0.4%.
The apparent end of the recent financial turmoil is carrying the dollar, with the euro returning to quote around 1.0725 against the greenback.
On the bond compartment, the yield on ten-year Treasuries rose above 3.62%, which seems to contradict the optimistic reading of the CPI index by Wall Street.
Among the stocks, Honeywell fell 0.1% following the appointment of its chief operating officer, Vimal Kapur, as general manager, replacing Darius Adamczyk, who had led the industrial conglomerate since 2017.
This management change comes as the American group saw its market capitalization climb from 88 to 145 billion dollars under the leadership of Adamczyk, representing an annual compound growth of 9%.
Meta, the parent company of Facebook, climbed for its part by more than 6% after announcing its intention to cut some 10,000 additional positions in its global workforce,
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