U.S. stocks point to an opening higher on Monday as investors digest measures taken over the weekend to protect the country’s banking system following the collapse of SVB Financial Group (NASDAQ:SIVB), as well as the possible impact on future Federal Reserve rate hikes.
At 13:00 (CET), the contract of Dow futures up 35 points, or 0.1%, S&P 500 futures A rise of 20 points, or 0.5%, is pointed to and the Nasdaq 100 futures They advanced 130 points, or 1.1%.
The U.S. Treasury and Federal Reserve announced on Sunday that they would protect all SVB depositors, as well as those at Signature Bank, which closed this weekend.
They also announced a new funding program for any federally insured bank, aimed at ensuring that the second and third largest failures in U.S. banking history do not cause avalanches on other institutions.
Investors are increasingly nervous that the Federal Reserve’s inflation-fighting campaign has exposed vulnerabilities in the financial system that could increase if the Federal Reserve steps up its rate hikes.
As for business news, the banking sector will continue to be in the spotlight, as companies like Wells Fargo (NYSE:WFC), Citigroup (NYSE:C) and JPMorgan fall more than 2.5% before the market opens.
Regional banks have been hit even harder: First Republic’s shares fall more than 60% before market open, Western Alliance shares nearly 50%, and PacWest’s Bancorp 40%.
Oil prices fell on Monday, reversing earlier gains following a Reuters report that the Biden administration will approve a major oil drilling project in Alaska.
Oil prices had benefited early on Monday from the U.S. dollar’s slide on growing expectations that the Federal Reserve will temper its monetary tightening policy going forward.
The Dollar Index, which tracks the currency’s performance against a basket of six other major currencies, is at two-week lows, making oil cheaper for holders of other currencies.
At 13:00 (CET), the futures of the U.S. crude fell 1.6% to $75.44 per barrel, while the contract fell <>.<>% to $<>.<> per barrel, while the Brent It leaves 1.5%, up to $ 81.55.
In addition, the Gold Futures up 1.1% to $1,887.65 per ounce, while the pair EUR/USD A rise of 0.3% to the level of 1.0675 is targeted.