Highlights
Equities were mostly higher Monday in muted trading with support from early risk-on sentiment spurred by hopes for progress in US debt ceiling talks and a rebound in regional bank stocks. The modest uptick flagged on renewed uncertainty over the debt ceiling plus recession talk after an unexpectedly weak Empire State manufacturing report.
The Dow industrials firmed 0.1 percent, the S&P 500 rose 0.2 percent, and the Nasdaq advanced 0.6 percent. Strength in Meta on an analyst upgrade helped the Nasdaq outperform. US Treasury yields, the dollar, and oil prices all rose.
Positive comments over the weekend from Treasury Secretary Janet Yellen boosted expectations for a resolution in the debt limit talks. Meanwhile, regional banks including PacWest, Western Alliance, and Zions recovered some of last week's losses and the bank sector saw a respite from its recent stress. On the distinctly negative side, the Empire State manufacturing index plunged 43 points to minus 31.8 in March, much worse than expected. New orders cratered by 53 points to minus 28.0, showing demand collapsed.
Most stock sectors saw gains, with financials leading, along with energy and materials. Other winners were technology, machinery, airlines, cruise lines, aerospace & defense, and rails. Lagging were utilities, real estate, managed care, autos, and consumer staples.
The Dow industrials firmed 0.1 percent, the S&P 500 rose 0.2 percent, and the Nasdaq advanced 0.6 percent. Strength in Meta on an analyst upgrade helped the Nasdaq outperform. US Treasury yields, the dollar, and oil prices all rose.
Positive comments over the weekend from Treasury Secretary Janet Yellen boosted expectations for a resolution in the debt limit talks. Meanwhile, regional banks including PacWest, Western Alliance, and Zions recovered some of last week's losses and the bank sector saw a respite from its recent stress. On the distinctly negative side, the Empire State manufacturing index plunged 43 points to minus 31.8 in March, much worse than expected. New orders cratered by 53 points to minus 28.0, showing demand collapsed.
Most stock sectors saw gains, with financials leading, along with energy and materials. Other winners were technology, machinery, airlines, cruise lines, aerospace & defense, and rails. Lagging were utilities, real estate, managed care, autos, and consumer staples.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
