NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rally As Banks Rebound

Key Insights

• Leading bank stocks gained strong upside momentum as regulators managed to calm markets. 
• Tech stocks rallied as risk appetite increased. 
• While the market sentiment is bullish, stocks will remain extremely sensitive to any developments in the banking sector. 

SP500

SP500 moved above the 3950 level as bank stocks rebounded after yesterday’s sell-off. JPMorgan Chase, Goldman Sachs, Bank of America and other leading financial stocks gained strong upside momentum as banking crisis fears eased.

Treasury Secretary Janet Yellen said that recent emergency measures ensured that the banking system remained in a good shape. Switzerland provided support of up to $54 billion to Credit Suisse, boosting market sentiment around the world.

Today, traders also had a chance to take a look at the economic data from the U.S. Initial Jobless Claims declined from 212,000 to 192,000 as the job market remained strong. The housing data exceeded analyst expectations. Building Permits increased by 13.8% month-over-month in February, while Housing Starts grew by 9.8%. These reports provided additional support to SP500 today.

NASDAQ

NASDAQ rallied above the 12,500 level as the appetite for risk increased. Advanced Micro Devices, Intel, and NVIDIA were among the biggest gainers in the NASDAQ today as demand for chip stocks remained strong. Traders expect that AI-related demand will boost the profits of semiconductor companies. In case the appetite for risk stays strong, NASDAQ will have a good chance to get to the test of the 12,750 level in the upcoming trading sessions.

Dow Jones

Dow Jones moved above the 32,200 level amid a broad market rebound. Unlike SP500 and NASDAQ, Dow Jones did not manage to get out of the recent trading range. In case Dow Jones manages to settle above the 32,400 level, it will gain additional momentum and head towards the resistance at the 20 EMA at 32,700.

For a look at all of today’s economic events, check out our economic calendar.