by Sinead Carew and Amanda Cooper NEW YORK/LONDON (Reuters) – Investors remain concerned about the absence of strong positive catalysts from banks and the economy, as the S&P 500 ended lower on Tuesday following gains in the previous session. Additionally, gold and Treasury yields rose for the second day in a row. Take care.
Stocks rose on Monday after investors were reassured by asset sales at the defunct Silicon Valley Bank and relieved by the absence of any new bank failures over the weekend.
With the bank area in strife for quite a long time following the startling disappointment of two US banks and the salvage of Credit Suisse in Europe, legislators on Tuesday examined top US bank controllers regarding territorial loan specialists Silicon Valley Bank and Mark Bank during declaration in Congress. I requested specifics.
According to a survey that was made public on Tuesday, Americans were becoming more worried about the labor market even though consumer confidence in the US unexpectedly increased in March. Additionally, as exports decreased in February, the US trade deficit for goods increased modestly, which may have hampered economic expansion in the first quarter.
According to Brad McMillan, chief investment officer at the Commonwealth Financial Network, the influx of economic data on Tuesday did little to alter investor sentiment.
McMillan stated, “We’re going to wait until we get some real news.”
“The economic news continues to be excellent, despite everyone waiting for a recession. When everyone is looking for bad news, even if it’s not bad news, it’s hard for markets to recover.
The Nasdaq Composite lost 71.98 points, or 0.61 percent, to 11,696.86, the S&P 500 lost 5.89 points, or 0.15 percent, and the Dow Jones Industrial Average gained 57.09 points, or 0.18 percent, to 32,489.17.
The skillet European STOXX 600 list declined 0.03% and MSCI’s check of offers all over the planet added 0.20%.
Shares in emerging markets increased by 0.7%. While Japan’s Nikkei gained 0.15 percent, MSCI’s broadest index of Asia-Pacific shares outside of Japan ended 0.81 percent higher.
Investors’ cautious optimism that stress in the banking system could be contained while they await sales of five-year notes led to a slight increase in the 10-year yield on the benchmark US Treasury note on Tuesday.
The benchmark 10-year note rose 2.1 premise focuses to 3.549% on Monday from 3.528%. The yield on the 30-year bond was 3.7631 percent, up 0.3 basis points. Last time, the yield on a 2-year note was 4.029%, up 6.4 basis points.
For the second day in a row, the US dollar was falling against a basket of currencies as investors’ appetite for currency risk was rekindled as a result of lessening concerns about the banking system.
The dollar list fell 0.282%, the euro rose 0.4% to $1.0839. The Japanese yen fortified by 0.47% versus the greenback at 130.91 per dollar, while real was exchanging at $1.2342, up 0.47% on the last day.
At 18.25, the Mexican peso gained 0.56 percent against the US dollar. The Canadian dollar acquired 0.29% against the greenback at 1.36 per dollar.
Philip Jefferson, governor of the Federal Reserve, stated on Monday that tensions among small banks could have the greatest impact on small businesses.
However, Goldman Sachs analysts stated that the tighter debt conditions brought about by the Fed’s efforts to control inflation would not cause the economy to collapse.
In a note on Tuesday, they stated, “We do not expect this to be a storm that pushes the economy into recession and forces aggressive Fed easing.”
Due to the possibility of supply disruptions from Iraqi Kurdistan, crude oil prices edged higher on Tuesday, extending their sharp gains from the previous session. After exports from Iraq’s Kurdistan region were halted, supply concerns caused crude oil prices to rise by more than $3 on Monday.
Brent was at $78.92, up 1.02% on the day, and US crude was at $73.55 a barrel recently.
Even though bond yields rose and concerns about the banking sector appeared to be decreasing, gold prices slid slightly higher after two sessions of losses, supported by a weaker US dollar.
To $1,967.73 an ounce, spot gold gained 0.6%.
(Revealing by Sinead Carew in New York, Amanda Cooper in London; Matthew Lewis and Sharon Singleton edited)