Dow Surges Over 300 Points; US Inflation Rate Drops To 6%
U.S. stocks traded higher this morning, with the Dow Jones gaining more than 300 points on Tuesday.
Following the market opening Tuesday, the Dow traded up 1.03% to 32,145.42 while the NASDAQ rose 1.78% to 11,388.42. The S&P 500, also rose, gaining, 1.51% to 3,913.80.
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Leading and Lagging Sectors
- Financials shares rose by 2.5% on Tuesday. Meanwhile, top gainers in the sector included Velocity Financial, Inc. (NYSE:VEL), up 11%, and Provident Bancorp, Inc. (NASDAQ:PVBC), up 9%.
- In trading on Tuesday, consumer staples shares rose by just 0.3%.
Top Headline
The annual inflation rate in the US eased to 6% in February, the lowest level since September 2021, in line with market expectations, and versus 6.4% in the previous month.
Equities Trading UP
- PacWest Bancorp (NASDAQ:PACW) shares shot up 45% to $14.10 as part of what appears to be a relief rally in the financial sector as several bank names bounce back after facing heavy selling pressure over the last few trading sessions.
- Shares of First Republic Bank (NYSE:FRC) got a boost, shooting 44% to $44.85 as part of what appears to be a relief rally in the financial sector as several bank names bounce back after facing heavy selling pressure over the last few trading sessions.
- Western Alliance Bancorporation (NYSE:WAL) shares were also up, gaining 34% to $35.01. Wells Fargo maintained an Overweight rating on the stock, but lowered its price target from $90 to $65. Western Alliance Bancorporation’s form 13G showed Citadel Advisors LLC increased stake in company to 5.3%.
Equities Trading DOWN
- GitLab Inc. (NASDAQ:GTLB) shares tumbled 28% to $32.05 after the company issued weak revenue guidance.
- Shares of Oportun Financial Corporation (NASDAQ:OPRT) were down 26% to $3.11 after the company posted downbeat Q4 results and issued weak revenue forecast.
- RAPT Therapeutics, Inc. (NASDAQ:RAPT) was down, falling 22% to $20.75 after reporting Q4 results.
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Commodities
In commodity news, oil traded down 1.8% to $73.46 while gold traded down 0.4% at $1,908.50.
Silver traded down 0.4% to $21.835 on Tuesday while copper fell 0.3% to $4.0435.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 gained 1.5%, London’s FTSE 100 rose 0.8% while Spain’s IBEX 35 Index climbed 2.3%. The German DAX climbed 1.9% French CAC 40 rose 1.8% and Italy’s FTSE MIB Index rose 2.1%.
Italy’s industrial production declined by 0.7% from a month ago in January. Spain's consumer price inflation rate was revised lower to 6.0% in February versus a preliminary reading of 6.1%.
The unemployment rate in the UK came in at 3.7% in November to January. Average weekly earnings climbed 5.7% year-over-year to GBP 630 in the three months to January.
Asia Pacific Markets
Asian markets closed lower on Tuesday, with Japan’s Nikkei 225 dropping 2.19%, Hong Kong’s Hang Seng Index dropping 2.27% and China’s Shanghai Composite Index declining 0.72%. India’s S&P BSE Sensex fell 0.58%.
Manufacturing production in Hong Kong dropped 0.1 percent year-over-year in the fourth quarter. Indian annual wholesale price inflation rate declined to 3.85% in February from 4.73% in the previous month. The Westpac-Melbourne Institute Index of Consumer Sentiment for Australia came in unchanged at 78.5 in March, while NAB business confidence index fell 10 points to -4 during February.
Economics
- The NFIB Small Business Optimism Index rose to 90.9 in February, recording the highest level in three months.
- The annual inflation rate in the US eased to 6% in February, the lowest level since September 2021, in line with market expectations, and versus 6.4% in the previous month.
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COVID-19 Update
The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 105,649,010 cases with around 1,148,990 deaths. India confirmed a total of at least 44,691,330 cases and 530,780 deaths, while France reported over 39,657,160 COVID-19 cases with 165,210 deaths. In total, there were at least 681,707,740 cases of COVID-19 worldwide with more than 6,812,900 deaths.