Dow futures up 200 points as U.S. regulators shore up banking system after SVB collapse
U.S. stock futures rallied on Monday as investors welcomed the authorities’ attempts to stem banking sector angst.
How are stock-index futures trading On Friday, the Dow Jones Industrial Average DJIA fell 345 points, or 1.07%, to 31910, the S&P 500 SPX declined 57 points, or 1.45%, to 3862, and the Nasdaq Composite COMP dropped 199 points, or 1.76%, to 11139. “Investors are waiting with bated breath to see if this rush of regulatory activity to try and limit the fallout from the SVB bank collapse will help soothe volatile markets and so far the bold action appears to be working,” Streeter added.
The chances of the Fed hiking interest rates by 50 basis points next week have fallen over recent sessions from 70% to zero, according to action in Fed funds futures. The central bank is now expected to raise borrowing costs by 25 basis points as it strives to suppress inflation running at more than three times its 2% target.
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