The S&P 500 index rose 1.4% last week, recovering some but not all of the previous week’s tumble, as some investors saw the recent stock market declines as presenting buying opportunities while a show of support among big banks for First Republic Bank also provided some relief.
It is now up 2% for the year-to-date but down 1.3% for March to date.
Concerns ramped up last week over First Republic Bank, but on Thursday, a group of 11 banks announced $30 billion in deposits into First Republic Bank in a show of support that helped ease fears a bit. Still, investors remain wary.
The communication services sector had the largest percentage increase last week, climbing 6.9%, followed by a 5.7% rise in technology and a 3.9% increase in utilities. Other sectors in positive territory for the week included consumer discretionary, health care, consumer staples and real estate.
The energy sector led to the downside, falling 7%, followed by a 6.1% drop in the financial sector. The materials sector also was in the red, down 3.5%, followed by a 2.5% decline in industrials.
This week’s economic calendar will be light with no major reports expected on Monday and only February existing home sales anticipated on Tuesday. However, the market will be heavily focused on a two-day Federal Open Market Committee meeting that concludes on Wednesday with a rate decision.
Later in the week, February new home sales will be reported on Thursday and February durable goods will come on Friday. Also on Friday, Standard & Poor’s is expected to release its final March purchasing managers indexes for the US services and manufacturing sectors.
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