After fears that there would be a major banking crisis, U.S. stock futures rose Wednesday night. This was due to volatile trading sessions.
Dow Jones Industrial Average futures rose 16 points or 0.05%. S&P 500 futures increased 0.13%, while Nasdaq 100 futures gained 0.35%.
Regular trading session
At one point, 725 points were lost before the day ended with a drop of 280.83 points or 0.87%. The
The tech-heavy dropped 0.7%
The margin was 0.05% lower.
After the announcement that Credit Suisse's largest shareholder, the Saudi National Bank had left, the major averages saw a rough start to the morning.
Could not provide additional funding
For the bank. Fears of a financial crisis prompted a wide selloff following the announcement by SNB. After an announcement by a Swiss regulator, the indexes gained some ground.
Swiss National Bank would offer additional liquidity
If necessary, contact Credit Suisse
Keith Buchanan (portfolio manager at GLOBALT Investments) said that "It's without doubt changing the landscape in how we as investors view the investability financial institutions that fit into the banking sector." "It makes us wonder how the sector will navigate in the future with more regulatory pressure on these corporations."
Buchanan said, "There is a race again to secure havens, especially U.S. Treasuries." There's a thought now that, at the Federal Reserve meeting next Wednesday, they'll have maybe a less hawkish tone to their actions and rhetoric.
Traders will be watching for important economic data, such as the most recent jobless claims report. At 8:30 a.m., the U.S. Census Bureau will release data on housing starts. ET.
Jabil and Dollar General will report earnings on Thursday, just before the bell. FedEx will announce its earnings after the market closes.
JPMorgan warns that credit headwinds could lead to a decline in GDP
Michael Feroli, JPMorgan analyst believes that GDP numbers could suffer in the upcoming quarters due to investor anxiety about the financial sector, especially mid-sized banks.
Feroli stated in a Wednesday note that a slower growth rate for loans by banks of mid-sized banks could reduce the GDP level by half to one-fifth of a percentage point over the next year.
"This is in line with our belief that tighter monetary policies will lead to the US entering recession later in the year," Feroli said. Feroli said that it is not uncommon for a Fed rate hike campaign to cause stress in the financial sector, but it is unusual when it does.
The Federal Reserve is expected to announce a 25 basis point rate increase, instead of a 50 basis-point-increase or a pause in rate increases entirely.
Feroli stated that a pause would send the wrong message about the seriousness and resolve of the Fed regarding inflation.
"It would also send the wrong message about 'financial dominant', which is the belief that the central banks are hesitant to tighten or quick to ease because they worry about financial stability.
-- Hakyung Kim
Stocks make the largest moves in the hours after hours
See the top companies that made headlines after the bell.
Credit Suisse shares rallied almost 7% after
A statement from the Swiss Financial Market Supervisory Authority (Swiss National Bank)
The bank's capital is adequate, the SNB stated. SNB stated that additional liquidity would be available if needed.
During Wednesday's trading session, shares plunged 13.9%
After Credit Suisse's largest shareholder, Saudi National Bank, stated that it couldn't provide any additional financial assistance to the Swiss bank.
After the announcement, shares of the software company rose 4.6%
Wall Street expectations were exceeded by fiscal first quarter results.
The company reported adjusted earnings at $3.80 per share with revenue of $4.66 million. Refinitiv polled analysts and predicted earnings of $3.68 per shares and $4.62 billion in revenue.
The shares of the value retailer fell more than 3% during extended trading. This was due to the muted outlook for the company's first quarter. Refinitiv reported that Five Below's revenue exceeded Wall Street's expectations and that earnings were in line with estimates.
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-- Hakyung Kim
U.S. stock futures were mixed Wednesday night
After fears that there would be a major banking crisis, U.S. stock futures were volatile on Wednesday night.
Dow Jones Industrial Average futures
The decline was 24 points or 0.07%.
Futures S&P 500
They were down 0.03% while Nasdaq 100 futures rose 0.10%
-- Hakyung Kim