© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 27, 2023. REUTERS/Brendan McDermid
By Shubham Batra and Amruta Khandekar
(Reuters) – It fell on Tuesday after a three-day rally buoyed by support measures for the banking sector and a deal for Silicon Valley Bank assets.
Bank shares rallied strongly on Monday after First Citizens BancShares Inc said it would buy the deposits and loans of Silicon Valley Bank, whose collapse earlier this month triggered a sell-off in the sector.
First Citizens shares rose 3.5% after rising more than 50% on Monday.
The KBW regional banking index fell 0.1%, while large US banks, including JPMorgan Chase (NYSE:) & Co, Bank of America (NYSE:) and Citigroup (NYSE:) were up marginally.
“The fact that we have answers about Silicon Valley Bank, signature bank (NASDAQ:) and Credit Suisse means we have more answers than questions,” said Art Hogan, chief market strategist at B Riley Wealth in Boston.
“But there are still enough unknowns that the market hasn’t really declared a clear signal yet.”
Lawmakers are expected to put US banking regulators on the defensive over unexpected failures by regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress later Tuesday.
Top regulatory officials from the Federal Reserve, the FDIC, and the Treasury Department will testify before congressional committees.
Money market bets are now split between the Fed raising interest rates by 25 basis points and a pause in its May policy meeting, after leaning largely toward a no-hike scenario late in the week. past, according to CME’s Fedwatch tool. Investors expect a sharp rate easing thereafter.
The Conference Board will release consumer confidence data later in the day, which is expected to show business conditions deteriorated marginally last month, warranting a softer policy stance from the Fed.
The S&P 500 and the Dow rose on Monday after the SVB deal was announced, while they closed lower, led by a fall in technology-related stocks.
microsoft corporation (NASDAQ:), Alphabet (NASDAQ:) Inc, Apple Inc (NASDAQ:) and Tesla (NASDAQ:) Inc continued to come under pressure, falling in the 0.6% to 2.5% range.
At 9:43 am ET, the S&P 500 was up 28.40 points, or 0.09%, at 32,460.48, the S&P 500 was down 8.01 points, or 0.20%, to 3,969.52, and the Nasdaq Composite was down 77.11 points, or 0.66%, at 11,691.73.
Ali Baba (NYSE:) Group Holding jumped 7.2% after the company said it plans to split its business into six main units covering e-commerce, media and cloud.
Actions of Lyft Inc (NASDAQ:) rose 6.7% after the ride-sharing company hired former Amazon.com (NASDAQ:) executive David Risher as its new director.
Walgreens Boots Alliance (NASDAQ:) Inc gained 2.6% after the American drugstore’s quarterly profit beat Wall Street expectations.
Issues that rose outpaced those that fell by a ratio of 1.26 to 1 on the New York Stock Exchange, while issues that fell outpaced those that advanced by a ratio of 1.15 to 1 on the Nasdaq.
The S&P Index posted five new 52-week highs and no new lows, while the Nasdaq posted 13 new highs and 40 new lows.
