Mar 28 (Reuters) – The S&P 500 and Nasdaq are lower on Tuesday after a recent rally driven by banking sector bailouts and a deal to sell Silicon Valley Bank assets.
First Citizens BancShares Inc climbed 5.3% after jumping more than 50% on Monday following a lender’s buyout of all Silicon Valley Bank deposits and loans.
The KBW Regional Banks Index edged up 0.55%, while major US banks including JP Morgan Chase & Co, Bank of America and Citigroup advanced 0.28% to 0.66%.
“The fact that we got answers about Silicon Valley Bank, Signature Bank and Credit Suisse means we now have more answers than questions,” said Art Hogan of B Riley Wealth in Boston.
“But there are still enough unknowns that the market hasn’t given a clear signal just yet.
Fed officials, the Federal Deposit Insurance Corporation and the Treasury are speaking before Congress today on the collapse of Silicon Valley Bank and Signature Bank.
Money market outlook is now evenly split between a 25 basis point Fed rate hike and a pause in the May meeting, according to CME’s FedWatch tool.
Data from the Conference Board on Tuesday pointed to an increase in consumer confidence in the US in March.
Shares of Microsoft Corp, Alphabet Inc, Apple Inc and Tesla Inc continued to experience pressure, falling in a range of 0.74% to 1.9%.
The Dow Jones index rose by 0.34% to 32.543.39 points by 17:11 Moscow time, the S&P 500 index held at the mark of 3.977.94 points, and the Nasdaq fell by 0.45% to 11.715.66 points.
Shares of Alibaba Group Holding jumped 8.3% after the company announced plans to split the business into six main divisions, including e-commerce, media and cloud technologies.
Shares of Lyft Inc rose 4.17% following the news that former Amazon.com executive David Risher became the company’s new CEO.
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(Shubham Batra, Amruta Khandekar, Shruti Shankar and Shashwat Chauhan in Bangalore)