Market check: Dow rises 300+ points, regional banks rebound
Yahoo Finance Live’s Julie Hyman breaks down how markets are moving in intraday trading on Monday.
Video Transcript
JULIE HYMAN: Let's check in on the market action as the banking sector continues to make headlines, major averages mixed at this point, as US investors continue to digest the forced marriage of UBS and Credit Suisse and international regulators really attempt to calm fears in the banking system. The Dow, which had been underperforming because of its weighting toward the banks, is now bouncing back.
And let's take a look at some other things that we are watching here at the YFi interactive. We have the 10-year yield, which I'm watching closely, which has been moving a bit higher, but put it in perspective here, it wasn't very long ago, in fact, just less than a month ago, that we had it at 4%, which is right around this line here. And then we have seen that slump in recent days on the perception that maybe the Fed is not going to be raising at the next meeting or maybe not raising by as much. We'll find out in a few days when the Fed actually comes out and makes its decision.
And then looking at the various bank stocks that we continue to watch closely here, big banks are mostly bouncing back in today's session. Just taking a look at the equal weight, just to give you a better look here, Credit Suisse itself continues to plunge because UBS is buying it at a steep discount, so hence what's going on there. UBS itself, though, is up the most among the major banks. It's up about 6% in today's session. And then you've got mostly green on the screen amongst the other banks.
So it does seem from an equity holder perspective that some measure of calm has resumed in markets here today. And it's mostly resumed in the regional banks as well. The one notable exception, of course, is First Republic Bank, which continues to be sharply lower after S&P downgraded it once again, the second time in a week.
But otherwise, we've got some strength among the regional banks today. And then I know the trade that Brad Smith has been watching has been what's happening with technology, which has actually been maybe a little bit unusually a place that people are going for more stability here. That is a more mixed picture in today's session, Amazon and Microsoft standing out to me in particular, Amazon down 2.7%, Microsoft down about 2.2%.
I'm watching Nvidia this week too. And that's because Nvidia is holding its big developers conference, its GTC conference. We're going to be talking to some executives there as the week goes on. Look at that year to date move at NVIDIA, although it's moving lower today, Brad.
BRAD SMITH: All right, chips catching a bite, well, over the course of this year at least, coming off of last year.