S&P 500 (SPY) Report – 03/24/23

Good morning traders!

The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…

Stock futures decline this morning due to concerns about the banking sector. Deutsche Bank’s U.S.-listed shares fell about 11% in premarket trading after its credit default swaps rose without an apparent cause, which raised concerns about the European banking industry’s health. Major U.S. banks’ shares, including Bank of America, JPMorgan Chase, and Wells Fargo, all fell by more than 2%, while Citigroup fell more than 3%. Larry McDonald, the founder of the Bear Traps Report, said on CNBC’s “Squawk Box” that the recent Silicon Valley Bank problem has brought more attention to banks, and investors around the world are focusing on poorly managed banks like Credit Suisse and Deutsche Bank, which have made terrible decisions for decades.

Also weighing in, investors and traders are still assessing the Fed’s latest policy decision that was announced this week. The central bank increased rates by a quarter-point, but also suggested that its rate-hiking campaign may be ending soon. Meanwhile, Fed Chair Jerome Powell noted that credit conditions have tightened, which could put pressure on the economy. Treasury Secretary Janet Yellen stated that regulators are ready to take further action if necessary to stabilize U.S. banks. This is the latest effort by regulators to boost confidence in the U.S. banking system following the closures of Silicon Valley Bank and Signature Bank.

Trade Ideas:
We advise everyone to trade with caution today as potential volatility may persist into today from the previous sessions following the Federal Reserve’s decision and recent speaker remarks

Note: Moving averages are reported from the previous trading session and will change during the next trading session. 

Friday Economic Events:
Durable Goods Orders 8:30am ET – High Volatility Expected
PMI Composite Flash 9:45am ET
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
No Speakers Scheduled

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