Wall Street closed higher This Thursday March 23 reassured by the words of the US Treasury Secretary, Janet Yellenwho said they would take measures to keep deposits safe of the Americans.
The session followed the boom and bust movements on Wednesday behind the Fed rate hikeand Yellen’s testimony before Congress, in which she ruled out blanket protection for all deposits.
“If we look at this market and see how it changes direction in a short time, we realize that is based on some agents’ interpretation of what someone said and how it affects the way you operate,” said Thomas Martin, GLOBALT senior portfolio manager Investments.
“What the market as a whole is telling you is that there are a lot of different ways to interpret all the things that people are saying”Martin added.
interest rate hikes of central banks around the world stressed the banking sectorwhich was revealed with the recent bankruptcies of SVB Financial Group and Signature Bank.
The comments of bank of england about what inflation will likely fade quickly also helped raise hopes of a light at the end of the tunnel of the tightening of central banks.
“All the central banks that were going to raise rates have raised them”added Martin from GLOBALT. “So all of them have identified that inflation is currently the biggest problem and poses the biggest risk to the system.”
According to preliminary data, the S&P 500 gained 11.12 points, or 0.28%, to 3,948.09 units, while the Nasdaq Composite it rose 116.85 points, or 1.00%, to 11,786.81. The Industrial Average Dow Jones it rose 66.08 points, or 0.21%, to 32,096.19.
First Republic Bank shares fell in volatile trading after Yellen’s testimony.
Source: Ambito
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