The gains for big tech outweigh the damage to financials as stress reduces bond yields.
Futures are firmer again on Friday. And, yet again, the S&P 500 SPX is eyeing the top of the range — 3,800 to 4,200 –with which it has been flirting for several months.
Bears may point to intermittent bursts of banking angst as a reason for caution. But according to Jitesh Kumar and Vincent Cassot, derivative strategists at Societe Generale, the turmoil in that corner of the financial sector, which began in March, has in fact not only reduced broader stock market volatility, but also helped lift the benchmark index.
Secondly, the bond markets have reacted to the turmoil by pushing yields lower on expectations that the banking problems nevertheless will crimp credit and reduce the need for the Fed to keep interest rates higher for longer. Indeed, Kumar and Cassot calculate that the financial sector over this period is responsible for a loss of 1.21% in the S&P 500, but technology has provided a 2.45% gain.
“While large-cap companies can afford to wait for better conditions and rely on their cash piles to finance activities, smaller and weaker companies often do not have that luxury and are more likely to need to come to the market and pay higher costs/face tighter conditions,” say Kumar and Cassot. The buzz President Joe Biden’s Friday meeting on the debt ceiling with congressional leaders has been postponed until next week — but the market seems ok with this. For now.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
NATO military chiefs discuss regional defence plansNATO military chiefs meet to prepare for the leaders’ summit to be held in the Lithuanian capital Vilnius in July with new regional plans in focus
Consulte Mais informação »
PREP SOFTBALL ROUNDUP: Opp goes unbeaten in South RegionalAfter coming close the last two years, the Opp softball team didn’t let an opportunity slip away this year.
Consulte Mais informação »
UA women's golf team surges to regional victory, advances to NCAA ChampionshipsThe Arizona women's golf team had the best round of the day Wednesday to win the NCAA Raleigh Regional; the Wildcats now advance to the NCAA Championships at Grayhawk Golf Club in Scottsdale.
Consulte Mais informação »
Blackstone in talks with regional banks to team up on loansBlackstone Group Inc. is negotiating a role as a party in regional-bank loans, the private equity firm’s president Jonathan Gray said in an interview with...
Consulte Mais informação »
Billionaire Wee Cho Yaw’s UOB To Tap Southeast Asia’s Growth With Expanded Regional FranchiseUnited Overseas Bank is stepping up competition across Southeast Asia as the Singapore lender taps its expanded retail banking customer base following the acquisition of Citigroup’s credit card business across four of the region’s largest economies.
Consulte Mais informação »