Treasury Yields and Stock Indexes Plunge as Fed Rate Hike Odds Fall
The 10-year Treasury yield tumbled 21 basis points to 3.48% last week, while the 2-year Treasury yield plunged 50 basis points to 4.9%, as Fed rate hike odds fall. The 10-year Treasury yield trended down 0.074 percentage points at 3.56%, and the 2-year yield was down 5 basis points at 4.17%. Bond yields fell and the major stock indexes were down significantly. The Dow Jones Industrial Average fell 1.6%, or more than 500 points, the S&P 500 plunged 1.4%, and the Nasdaq Composite dropped 1%.
First Republic Bank (NYSE:FRC) stock crashed more than 60% Monday morning, even after saying it got fresh funding from the Federal Reserve and JPMorgan. The Western Alliance has seen a drop of more than 60%. In spite of a Citigroup upgrade, Schwab dropped by 6%. Despite receiving an upgrade from Wells Fargo on Friday, JPMorgan Chase (JPM) dropped 1%. BAC (Bank of America) dropped 3%. The XLF financial ETF experienced a slight decrease, whereas the KRE regional bank ETF experienced a large drop.
At 6:45 P.M. Eastern Time (10:45 P.M. Greenwich Mean Time), futures of the Dow Jones, Nasdaq 100, and S&P 500 all dropped slightly,
UMB, based in Kansas City, has the highest local market share of any regional or national bank in the metro area. Amid a collection of regional banks across the nation that experienced a notable drop in their share prices, the federal government sought to restore faith in the American banking system.
On Tuesday, traders were active on the floor of the New York Stock Exchange in New York City. On Wednesday, stock prices plummeted due to concerns that apprehensions about the banking sector were escalating to other parts of the globe.
The Producer Price Inflation report for February will be released by the Bureau of Labor Statistics. It is anticipated that the month-on-month rise in wholesale prices will be 0.3%, which is more sluggish than January’s 0.7% increase. It is predicted that the yearly rate will diminish from 6% to 5.4%. It is anticipated that the core Personal Price Index (PPI) will increase by 0.4% from the month of January, when it grew by 0.5%, and the yearly rate could have declined from 5.4% to 5
The 10-year Treasury yield, 2-year Treasury yield, and major stock indexes all saw significant drops this week.
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