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Wall St | Americans will celebrate its fallen military staff, and imprint the informal beginning of summer, this Memorial Day, Monday, May 30.

S&P 500 Posts Marginal Gains Following First Citizens’ Silicon Valley Bank Deal

Monday’s Wall Street trading session resulted in a mixed outcome, with the S&P 500 index experiencing marginal gains thanks to the performance of banking stocks. Investor confidence was boosted by news of a deal to rescue the assets of the closed Silicon Valley bank. However, the NASDAQ index and tech stocks showed continued decline throughout the day, causing both indexes to close in the negative.

The Dow Jones Industrial Average experienced an increase of 194.55 points, or 0.6%, reaching a total of 32,432.08. The S&P 500 index also saw a gain of 6.54 points, or 0.16%, closing at 3,977.53. On the other hand, the Nasdaq Composite index decreased by 55.12 points, or 0.47%, settling at 11,768.84.

First-Citizens Bank and Trust Company, headquartered in Raleigh, North Carolina, has made a strategic decision to acquire the assets and deposits of Silicon Valley Bridge Bank, which recently failed and was closed down by the California Department of Financial Protection and Innovation.

This move has had a positive impact on the bank’s stocks, driving them upwards and helping the institution to regain its footing in the market

On Monday, there was a modest uptick of 3.1% in the value of the S&P 500 Banking index. This was fueled by significant gains in the shares of several banks, including JP Morgan Chase (2.5%) and Bank of America (5%), which were among the biggest winners on the S&P 500.

This positive momentum helped push the index higher. First Citizens Bank also saw a significant surge in its stock price, with a 50% gain in just one trading session.

NASDAQ conclude trading with losses

At the close of trading on Monday, the NASDAQ composite index fell by 0.47%, ending the day at 11,768.84. Similarly, the NASDAQ 100 index recorded a decline, closing at 12,673.07, down 93.98 points (-0.74%).

Several technology giants experienced declines in their stock prices, including Apple Inc (-1.23%), Advanced Micro Devices-AMD (-1.37%), Amazon (-0.09%), Nvidia (-0.93%), and Meta Platforms (-1.54%).

Although tech stocks experienced a decline, analysts and market experts are anticipating a potential rebound as various companies have indicated positive signs in their latest quarterly statements.

However, the poor performance of crypto stocks has had a significant impact on the overall market segment. Additionally, the recent closures of Silicon Valley Bank and Signature Bank have created uncertainty among investors and traders, further contributing to the downward trend.

PCE numbers on Friday

The upcoming release of the Personal Consumption Expenditures (PCE) data has garnered significant attention from the stock market, as it is considered the most crucial metric and the Federal Reserve’s preferred inflation gauge. The PCE is scheduled to be released on Friday.

According to economists, personal income in February is expected to show a modest increase of 0.3%, slightly lower than January’s reading of 0.6%.