The Major Markets sprung to life last week with gains across all five indices, despite the seemingly ever-present volatility related to banking confidence. The week began with the news that UBS completed the acquisition of the troubled Credit Suisse through a deal constructed by the Swiss government. This $3.2B deal saw the roughly $1.1 Trillion institution take over the $531B Credit Suisse, shoring up the European banking sector and expanding the size of the “Too Big to Fail” giant. Back stateside, depositors carried concerns about the state of the American Banking system as smaller banks still struggled with depositor confidence. On Tuesday, the S&P 500 saw the index trade back up to the 4000 level. On Wednesday, it was Jerome Powell’s turn to offer reassurance. Following his Prepared comments during the FOMC Post Meeting Press Conference, complete with another 25-basis point increase. In the end, the S&P 500 traded down to the intra-week lows Friday before recovering midday to contain the entirety of the final weekly gains within that day of trading. Market participants still remained suspicious of the Fed’s ability to keep interest rates at an elevated level for the remainder of the year. According to the CME Group’s Fed Watch tool, participants have continued to project the greater likelihood of interest rates a percentage point lower at this time next year. Furthermore, the bond market continued to keep the yield curve inverted, well below the Fed Funds Rate, and much of the curve 50 to 100-basis points lower than the end of February. At Leap Wealth, we are here to help our clients manage through all the highs and lows. Contact us today to learn more.
The Major Markets sprung to life last week with gains across all five indices
March 28, 2023