Solid News

S&P 500 Increased Uncertainty in the US Stock Market

3/20/2023 12:47 PM

The leading US economy index S&P 500 is correcting, trading at around 3915.0.

Investors are watching the development of the crisis in the US banking sector, which began to spread to the financial institutions of the eurozone. After the bankruptcy of Silicon Valley Bank, one of the largest players in the Swiss market, Credit Suisse Group AG, announced that it was impossible to fulfill its obligations to customers, after which the country's government initiated a deal to buy it by its main competitor, UBS Group AG, which set a price of 3.2 billion dollars, which is two times lower than the market capitalization of Credit Suisse. Officials pledged to provide a guarantee to cover potential losses of 9.0 billion dollars, and the regulator committed to allocate 108.0 billion dollars to UBS Group AG to replenish liquidity.

A similar situation is observed in the US, where New York Community Bank announced its intention to buy the bankrupt Signature Bank. The deal will bring 38.4 billion dollars in assets under its management, including 12.9 billion dollars in outstanding loans. Decisions regarding Silicon Valley Bank have not yet been made.

The growth leaders in the index are FedEx Corp. (+7.97%), Newmont Goldcorp Corp. (+5.22%), Teleflex Inc. (+1.56%), eBay Inc. (+1.47%).

Among the leaders of the decline are First Republic Bank (-32.80%), U.S. Bancorp (-9.38%), Enphase Energy Inc. (-8.68%).

The index quotes continue the corrective trend, trading below the local ascending corridor support line with the boundaries of 4000.0–4360.0 on the daily chart.

Technical indicators reversed and issued a new sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO histogram, being in the sell zone, continues to form corrective bars.

Support levels: 3860.0, 3680.0. | Resistance levels: 3980.0, 4140.0.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024