U.S. stock futures were mixed early Friday morning after a relief rally earlier on Thursday.
Dow Jones Industrial Average futures fell by 46 points, or 0.14%. S&P 500 futures inched up 0.02%, while Nasdaq futures rose 0.2%.
Shares of First Republic Bank slid about 24% in after-hours trading, a sharp reversal from its nearly 10% surge in the regular session.
The major averages rose in regular trading earlier Thursday. The Dow added 371.98 points. The S&P 500 advanced 1.76%, and the tech-heavy Nasdaq Composite rose 2.48%.
The session’s gains came after a group of banks said it would aid First Republic with $30 billion in deposits as a sign of confidence in the banking system. The major indexes were also buoyed by an announcement from Credit Suisse that it will borrow up to $50 billion francs (nearly $54 billion) from the Swiss National Bank.
Stocks are also on their way to a strong finish for the week. The Dow is up 1.06% for the week, while the S&P 500 is up 2.56% — on pace for its best weekly performance since January. The Nasdaq is up 5.19%, on track for its best week since November.
Investors are looking ahead to the Federal Reserve’s meeting next week to see how the central bank will proceed in its fight against inflation in light of the shakeup in the banking sector.
“There’s a push-pull in the market right now. The regional banking crisis is a huge negative for the economy and the market. But the overhang that existed prior to the banking crisis was an overly hawkish and irrational Fed,” said Infrastructure Capital Advisors’ CEO Jay Hatfield.
“Every Fed tightening cycle does expose a weakness in the economy. What we have here is a FDIC insurance debacle. We urge people to be a little bit cautious, particularly until we hear what the Fed has to say,” Hatfield added.
Traders will watch out for the preliminary reading of the consumer sentiment index from the University of Michigan, as well as industrial and manufacturing production to get a better grasp on the economy ahead of the Fed’s meeting next week.
A German court has ordered a British pensioner, who cancelled the sale of vintage tape recorder on eBay after noticing it was damaged, to pay £11,600 to the w
For a quarter of a century after the cold war, western democracies dared to believe the era of global confrontation was past. Some of the resources once
The Labour party’s 125-year anniversary is two years away. By then, it will have held power for just 33 of those years. The ambition to build a socialist comm
To get a better understanding of a type of uncurable childhood tumour, cancer cells will be flown into space. To study how diffuse midline glioma spreads in mi