(Bloomberg) US equity-index futures were steady on Friday and Treasuries gained, capping a tumultuous week for global markets amid lingering concern that the financial turmoil which has roiled bonds and stocks is not over. Contracts on the S&P 500 fluctuated after the index rallied 1.8% yesterday as larger banks threw a lifeline to First Republic Bank, the latest US lender to signal stress. That didn’t stop shares in First Republic from sliding in pre-market trading, however. On the plus side, FedEx Corp. jumped more than 10% after the courier boosted its profit outlook. Futures on the Nasdaq 100 were flat as the rates-sensitive gauge heads for its best week since November amid expectations the Federal Reserve will temper its tightening path. The 10-year Treasury yield dipped and a gauge of the dollar declined. Banks including JPMorgan Chase & Co. and Citigroup Inc. banded together in a show of support for First Republic on Thursday. While the rescue attempt helped boost sentiment,
(Bloomberg) US stock soared as traders wager the worst of the banking sector turmoil has passed, while Treasury yields climbed after the latest inflation reading cemented bets for a Federal Reserve rate hike next week. The S&P 500 advanced 1.6%%, the biggest one-day gain since early February, as regional bank shares bounced back from two days of frantic selling. The policy-sensitive Nasdaq 100 rose more than 2%. The two-year Treasury yield climbed to 4.4% following a three-day swoon that was the biggest in decades amid the tumult after data showed inflation remained elevated in February. Swaps traders now expect the Fed to lift rates by a quarter percentage point. Odds of an increase had slipped to nearly 50-50 on Monday. The dollar was little changed versus major peers. US consumer prices rose 0.4% in February, meeting economists’ forecast. The closely watched core CPI number which excludes food and energy increased 0.5%, just ahead of the median estimate of 0.4%. Anxiety o
(Bloomberg) US stocks rallied into the close as traders wagered the worst of the banking turmoil has passed. Treasuries fell. The S&P 500 recovered much of its lost gains in the late afternoon session after a Russian fighter jet colliding with a US drone tamped down the initial enthusiasm. The tech-heavy Nasdaq notched its biggest one-day gain in six weeks. The relief rally in banking stocks was crimped as the KBW Bank Index ended the day with a 3.2% gain. Remarks from ratings companies on the financial sector underscored the fragile sentiment as markets were jolted by the biggest American bank failures since the financial crisis. Moody’s Investors Service cut its outlook on the sector on the heels of the trio of banking collapses over the past few days. First Republic Bank triggered a volatility halt after S&P Global Ratings placing the company on watch negative. The two-year Treasury yield climbed to 4.3% following a three-day swoon that was the biggest in decades amid the tumul