Markets Gain on Bank Rebound, Inflation Report

Table showing the performance of major U.S. financial indexes on March 14, 2023


Key Takeaways

  • U.S. stocks mounted a recovery on March 14, with shares of regional banks rallying back from recent declines that were driven by turmoil in the banking sector.
  • The Consumer Price Index (CPI) showed that inflation was slowing, which boosted expectations that the Fed could moderate its interest rate hikes.
  • Airline stocks descended during Tuesday's session, with United (UAL), Alaska (ALK), and Southwest (LUV) closing lower.

U.S. equities rose as bank stocks that have been beaten down by the collapse of Silicon Valley Bank and Signature Bank rallied. Adding to the advance was optimism the Fed may pull back on raising interest rates after the February report on consumer prices showed inflation slowing.

Regional banks bounced back from their recent selloff, although after big early jumps, their gains faded somewhat. First Republic Bank (FRC) led the S&P 500 higher, with shares rising 27%. Shares of KeyCorp (KEY), Comerica (CMA), and Zions Bancorporation (ZION) gained. Shares of large banks, including Citigroup (C) and Wells Fargo (WFC), also climbed.

Charles Schwab (SCHW) shares made a strong comeback as CEO Walt Bettinger said that the discount brokerage is seeing large cash inflows and that he bought 50,000 shares for his personal account. Meta Platforms (META) shares increased as it slashed its workforce again in a cost-cutting move. Shares of all the other FAAMG stocks were up. Shares of Uber Technologies (UBER), Lyft (LYFT), and DoorDash (DASH) climbed on a court ruling in their favor over the classification of their drivers.

Airline Stocks Drop

It was a tough day for airline stocks. United Airlines (UAL) was the worst-performing stock in the S&P 500 after the carrier said that it now expects a loss in the current quarter. Shares of Alaska Air Group (ALK) dropped as it warned that higher fuel costs will hurt margins. Southwest Airlines (LUV) shares were down after it reported that the huge flight disruptions it faced in December continued to impact revenue in January.

Amgen (AMGN) shares slipped as the biotech firm faced a lawsuit claiming it withheld information about a possible tax liability. Shares of shipping firms J.B. Hunt Transport Services (JBHT) and C.H. Robinson (CHRW) declined.

The yield on the 10-year Treasury note increased. Oil futures sank to their lowest level since December on concerns about future demand. Gold prices were lower. The U.S. dollar was up versus the pound and yen but down against the euro. Major cryptocurrencies gave back early gains but still traded in positive territory.

Table showing the S&P 500 stocks with the biggest gains and losses on March 14, 2023


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