Bank Optimism and Yellen's Comments Lift Markets

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Published March 21, 2023

Key Takeaways

U.S. equities jumped, boosted by bank stocks and by comments from Treasury Secretary Janet Yellen that smaller banks that fail could get a government backstop for uninsured deposits.
Moody’s raised the rating on Tesla’s (TSLA) debt from junk to investment grade, and that sent shares of the electric carmaker up almost 8%.
Utility companies were among the biggest decliners in the S&P 500.
Falling gold prices drove down shares of Newmont Corporation (NEM) and rival gold miners.

U.S. equities jumped, boosted by bank stocks on reports of another industry effort to assist struggling First Republic Bank (FRC), and by comments from Treasury Secretary Janet Yellen that if needed, smaller banks that fail could get a government backstop for uninsured deposits. All that came a day before the Federal Reserve is set to announce whether it will continue raising interest rates to fight inflation, or hold off because of the turmoil in the banking sector.

First Republic shares soared 30% on the news, and other regional banks, including KeyCorp (KEY), U.S. Bancorp (USB), and Comerica (CMA), rose as well. Large bank stocks also advanced, with shares of JPMorgan Chase (JPM), Goldman Sachs (GS), Citigroup (C), and Wells Fargo (WFC) climbing more than 2%, and Bank of America (BAC) shares adding 3%.

All the FAAMG stocks were higher. Moody’s raised the rating on Tesla’s (TSLA) debt from junk to investment grade, and that sent shares of the electric carmaker up almost 8%. Canadian Solar (CSIQ) shares skyrocketed after the solar power firm exceeded earnings and revenue estimates, and that helped drive up shares of SolarEdge Technologies (SEDG), Enphase Energy (ENPH), and others in the sector.

Oil futures climbed, lifting shares of fossil fuel-related companies such as Chevron (CVX), SLB (SLB), and APA (APA). Shares of insurance provider Assurant (AIZ) advanced on an analyst upgrade.

Gold Mining Stocks Dip

Utility companies were among the biggest decliners in the S&P 500. Falling gold prices drove down shares of Newmont Corporation (NEM) and rival gold miners. Shares of Intel (INTC) and Applied Materials (AMAT) dropped.

The yield on the 10-year Treasury note was up 13 basis points (bps). The U.S. dollar gained against the pound and yen, but dipped versus the euro. Most major cryptocurrencies traded in the green.

S&P 500 Biggest Gains and Losses 3/21/2023 — Investopedia

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