Stockchase After the CloseLooks like today will be another tough test. The markets are reacting negatively to Credit Suisse but that bank was in trouble long before SVB. GLTA
The post-SVB rout in stocks ended Tuesday morning after the latest U.S. inflation numbers came in meeting market expectations. Core inflation actually ticked up slightly higher than expected while non-core was slightly lower than expected. The numbers encouraged the bulls to charge, expecting the U.S. Fed to pause their interest rate hikes or raise them at a slower pace. Markets were consistently strong throughout Tuesday with the S&P finishing 1.68%, the Nasdaq 2.14%, and the Dow 1.06% or more than 300 points.
Tech was a major gainer with Meta jumping 7.25% after announcing a second round of mass layoffs to cut costs. Tesla rallied 5.03%, Microsoft added 2.71%, though United Airlines sank 5.37% after missing their quarter. Notably, First Republic Bank regained about 27%, about half of Monday’s stunning loss. The U.S. 10-year regained ground, up to 3.67% while Bitcoin jumped 3% to nearly $25,000.
The TSX showed more muted gains, adding 0.54% and growing within reach of 20,000. Energy was the only weak sector as WTI slid 4.5% to $71.50. Tech and staples led. Major movers included CNQ at -2.02%, Cenovus -1.94%, Nuveileaping 7.56%, Enghouse Systems 7.07% and ECN Capital rallying 9.39%.