Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
Stock futures are trading higher this morning following US and European efforts to stabilize the banking system. The Federal Reserve’s policy-making committee faces a tough decision whether to raise interest rates or take a pause amid the turmoil in the banking sector. The European Central Bank raised interest rates by 50 basis points, saying it remains committed to dampening inflation while monitoring the banking sector. JPMorgan is reportedly leading talks with other banks about efforts to stabilize First Republic Bank. Other regional bank stocks making gains on Tuesday include PacWest Bancorp, Zions Bancorporation, Western Alliance Bancorporation, and Regions Financial.
The Federal Reserve is facing a tough decision regarding interest rates due to recent banking turmoil, which has caused upheaval in various financial markets. The decision is a balancing act, as no hike may cause worry and panic, while an aggressive hike could trigger further consequences. JPMorgan Chase CEO Jamie Dimon is leading rescue talks for First Republic Bank. Despite the banking stress, the annual rate of inflation is still at 6%, making the decision even harder. A 25 basis-point hike seems appropriate, but it’s not an easy call.
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Tuesday Economic Events:
Redbook Sales 8:55am ET
Existing Home Sales 10:00am ET – High Volatility Expected
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
Fed Chair Yellen Speaks 10:00am ET – High Volatility Expected
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