S&P 500 plummets as sentiment deteriorates amidst banking contagion fears, Credit Suisse falls 24%


  • The S&P 500, the Nasdaq 100, and the Dow Jones collapsed as the banking system crisis deepened.
  • The US Producer Price Index cooled, while Retail Sales dropped after an outstanding January report.
  • Investors expect the Federal Reserve to keep the Federal Funds Rate unchanged at the next meeting.

Wall Street collapsed as the banking crisis deepened, with Credit Suisse’s (CS) stock plunged 24% in the day amidst comments from its largest shareholder to not invest in the bank due to “regulatory and statutory reasons.” That has triggered a collapse in CS stock, while its Credit Default Swaps (CDS) are reaching levels last seen since the Global Financial Crisis (GFC).

Therefore, the S&P 500 is dropping 1.46%, at 3,862.14. Following suit is the heavy-tech Nasdaq 100, falling 0.76% at 11,342.55, while the Dow Jones is losing 1.74%, at 31,598.13.

Sentiment remains sour amidst the Credit Suisse panic sale. Bank’s shares across the board registered losses, while more than 80% of the S&P 500 stocks listed fell. Aside from this, the United States (US) economic calendar revealed the Retail Sales and Producer Price Index (PPI) for February. Retail Sales came lower than the expected plunge of 0.3% MoM, dropped 0.4%, in part blamed on the astonishing January report of 3.2%

The US Producer Price Index (PPI) dropped 0.1% MoM, the US Bureau of Labor Statistics reported today. Core PPI, which excludes volatile items like food and energy, cooled down from 0.4% estimates to 0%.

In the meantime, expectations for a 25 bps rate hike by the Federal Reserve (Fed) had waned. The CME FedWatch Tool odds for a 25 bps hike lie at 37%, with investors estimating no change to the Federal Funds rate (FFR) at next week’s meeting.

Sector-wise, Utilities and Communications Services are the two leaders of the pack, up 1.16% and 0.25%. The laggards are Energy and Materials, each losing 6.18% and 4.42%, respectively.

Meanwhile, the greenback is recovering after three days of consecutive losses, as the US Dollar Index shows, advancing 1.21% at 104.937. US Treasury bond yields continued to plunge across the curve, with 2s falling 43 bps, at 3.823%, while the 10-year dropping 28 bps at 3.410%.

What to watch

The US economic calendar will feature February Housing Starts, Building Permits, and Initial Jobless Claims.

S&P 500 Daily chart

SP 500

Overview
Today last price 3844.57
Today Daily Change -75.42
Today Daily Change % -1.92
Today daily open 3919.99
 
Trends
Daily SMA20 3992.54
Daily SMA50 4009.15
Daily SMA100 3958
Daily SMA200 3930.14
 
Levels
Previous Daily High 3934.51
Previous Daily Low 3858.31
Previous Weekly High 4076.17
Previous Weekly Low 3843.78
Previous Monthly High 4192.63
Previous Monthly Low 3940.95
Daily Fibonacci 38.2% 3905.4
Daily Fibonacci 61.8% 3887.42
Daily Pivot Point S1 3874.03
Daily Pivot Point S2 3828.07
Daily Pivot Point S3 3797.83
Daily Pivot Point R1 3950.23
Daily Pivot Point R2 3980.47
Daily Pivot Point R3 4026.43

 

 

 
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