NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rise After Credit Suisse Deal

Key Insights

• SP500 moved towards the 3950 level as banking crisis fears eased. 
• Meanwhile, First Republic Bank stock was down by more than 30% after an analyst downgrade. 
• NASDAQ index was swinging between gains and losses as traders continued to take profits after the recent rally. 

SP500

SP500 rebounded towards the 3950 level as traders reacted to the takeover of Credit Suisse. UBS agreed to buy its rival for $3.23 billion. Switzerland is reportedly ready to provide as much as $280 billion in support to the troubled banks.

Fears of a global financial crisis caused by bank failures eased, which was bullish for stocks. Meanwhile, First Republic Bank was down by more than 30% after S&P downgraded the stock despite the recent support from big banks. Interestingly, the problems of the First Republic Bank had no impact on market sentiment as traders focused on the Credit Suisse deal.

Today’s rebound is broad, and most market segments are moving higher. The rebound is led by energy stocks which enjoy strong support as oil markets managed to rebound from yearly lows.

NASDAQ

NASDAQ remains stuck near the 12,500 level as traders continue to take profits after the recent rally.

Tech stocks were mostly flat today as traders focused on other market segments. In addition, Treasury yields rebounded from multi-month lows, which was bearish for the yield-sensitive tech stocks.

Dow Jones

Dow Jones  found support near the 31,500 level and climbed back above 32,100. Caterpillar and Dow were the biggest gainers in the Dow Jones index today. Intel and Microsoft were down by roughly 3% as traders took profits after the strong moves in these stocks. From a big picture point of view, the Dow Jones index remains stuck in a range.

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