Wall Street ends green as Fed officials sooth bank jitters

Record ID: 1717741

  • Title: Wall Street ends green as Fed officials sooth bank jitters
  • Date: 24th March 2023
  • Summary: GLENVIEW, ILLINOIS, UNITED STATES (MARCH 24, 2023) (REUTERS) (SOUNDBITE) (English) BANRÍON CAPITAL MANAGEMENT FOUNDER AND CEO, SHANA ORCZYK SISSEL, SAYING: "The market is obviously got a lot of volatility and potentially further downside, but markets tend to bottom before recessions really start. So, it is a forward-looking indicator. And so we're likely to see continued downside pressure and continued stress in the markets as companies start to reevaluate how they're running their businesses, they start to tighten their belts, their balance sheet, their cash positions, cost of debt goes up. These things will affect how companies run their business, which will slow the economy, but as long as we still have a tight labor market, it's very hard to imagine a scenario where we will have a serious recession.” WHITE FLASH (SOUNDBITE) (English) BANRÍON CAPITAL MANAGEMENT FOUNDER AND CEO, SHANA ORCZYK SISSEL, SAYING: “Deutsche Bank is, has been an issue. It's not a bank that we weren't aware had problems for years now. And I think a lot of people see what has happened here in the US and think there's going to be contagion. We've seen a little bit of that. So people are trying to predict what the next problem is going to be. And Deutsche Bank is just the obvious one since it's been having problems with its derivatives book and things of that nature for a while. So that's what you see there. It's not reflected in the business. You know, we have folks in Germany saying the bank is fine. What we're seeing is in the credit default swap market, not necessarily that something has happened at the bank unexpectedly.” WHITE FLASH (SOUNDBITE) (English) BANRÍON CAPITAL MANAGEMENT FOUNDER AND CEO, SHANA ORCZYK SISSEL, SAYING: “There is zero chance that the Fed is going to cut (the rate) by the end of this year. And I think there's a very low chance, I'm not putting it at zero, that they will do any cuts in 2024. The dot plot (the fed’s rate-hike projections) says they're not planning on making any cuts till 2025. They want to get inflation at 2%. They're not going to cut rates if inflation is not at 2% and we're at 6 (%) and inflation does not fall quickly.”
  • Embargoed: 7th April 2023 21:01
  • Keywords: Deutsche Bank Dow Nasdaq S&P 500 rate-cut the Fed
  • Location: NEW YORK, NEW YORK + GLENVIEW, ILLINOIS, UNITED STATES
  • City: NEW YORK, NEW YORK + GLENVIEW, ILLINOIS, UNITED STATES
  • Country: US
  • Topics: Economic Events,North America,Equities Markets
  • Reuters ID: LVA002011924032023RP1
  • Aspect Ratio: 16:9
  • Story Text:U.S. stocks closed higher on Friday (March 24), marking the end of a tumultuous week as U.S. Federal Reserve officials calmed investor fears over a potential liquidity crisis in the banking sector.
    While all three major U.S. stock indexes started the session sharply lower on the heels of a sell-off among European banks, those losses reversed by the closing bell, repeating the intraday roller coaster ride of recent sessions.
    At the conclusion of a volatile week, marked by a Fed interest rate hike and mounting worries over the health of the banking system, all three indexes notched weekly gains.
    The S&P 500 gained 22.27 points, or 0.56%, to end at 3,970.99 points, while the Nasdaq Composite gained 36.56 points, or 0.31%, to 11,823.96.
    The Dow Jones Industrial Average rose 132.28 points, or 0.41%, to 32,237.53.
    (Production: Kyoko Gasha, Alex Cohen)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2023. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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