After a sharp fall, stock indices are on an upward trajectory

American stock indexes recorded significant growth as fears about the banking system subsided, and data on inflation in the USA aligned with expectations.

The Dow Jones rose by 1.06 per cent, 32,155 points, while the S&P 500 rose by 1.68 per cent, 3,920 points, and the Nasdaq index by 2.14 per cent, to 11,428 points.

After a sharp fall the day before, on Tuesday, the indices rose because the pressure on the banking sector that lasted since the end of last week and the collapse of two banks – Silicon Valley (SVB) and Signature – eased. Moody’s negative assessment of the banking sector failed to sway investors.

Fears of the spread of the crisis in the banking system subsided after the authorities of the US and several other countries said that the they would handle the crisis and that there was no reason to worry about other banks.

Inflation data encouraged investors, which is in line with analysts’ expectations. In February, consumer prices in the US rose 0.4 per cent every month and six per cent annually. This indicates a gradual easing of inflationary pressures; hence many think that the US central bank, the Fed, will slow the pace of interest rate increases.

Pressure in the banking sector caused the Dow Jones and S&P 500 indexes to fall

Wall Street notes a decline in the Dow Jones and the S&P 500 index, which has caused pressure on the banking sector. On the other hand, certain sectors saw gains as the collapse of SVB Bank should slow the pace of interest rate hikes by the Fed.

The Dow Jones fell 0.28 per cent to 31,819 points, and the S&P 500 fell 0.15 per cent to 3,855 points. The Nasdaq index rose by 0.45 per cent to 11,188 points.

After a sharp fall in the market at the end of last week, on Monday, investors were somewhat encouraged by the measures announced by the US central bank after the bankruptcy of SVB and Signature Bank to stabilize the banking system.