The US financial system is safe and sound, according to Yellen
- 17 March 2023
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
Wall Street went up yesterday
Thursday has been a positive day for the US stock market.
All three major US indexes have closed in profit.
The S&P 500 finished at +1.76%, the Nasdaq ended the trading session at +2.48% and the Dow Jones closed at +1.17%.
The positive movement has been driven by the injection of $30 billion in First Republic Bank which has reassured the investors of the worries regarding a financial crisis.
The investors’ sentiment is Fear, as indicated in the graph below:
Sentiment indicator – Fear & Greed Index
The market sentiment is 26, in “Fear” mode, up from yesterday’s data which was in Extreme Fear.
The US financial system is safe and sound
Yesterday, 11 of the biggest US banks deposited $30 billion to help First Republic Bank to calm down the investor’s nerves about the recent bank run panic.
US banks have borrowed an overall $164.8 billion from two Federal Reserve institutions in recent days. That is a sign that the Federal Reserve has under control the financial stability.
Treasury secretary, Janet Yellen, said “I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them. This week’s actions demonstrate our resolute commitment to ensure that our financial system remains strong and depositors’ savings remain safe.”
The latest economic data
Yesterday, the weekly US initial jobless claims has been published.
The current data is 192,000 new claims which are less than the 205,000 forecasted.
The labour market is still very strong despite the restrictive monetary policy implemented by the Federal Reserve.
Investors are expecting a 0.25% interest rate hike at the next FOMC on 22 March.
Portfolio update
I remain neutral and cautious about the stock market.
I hold long and short stock positions and aim to profit regardless of the market direction.
If you are already copying my portfolio, please keep the copy open.
If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).
Remember to copy the open trades to optimize the copy.
Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.
Thank you, everyone. Have a nice day!
Steps to follow to copy my portfolio automatically:
1. Create an eToro account here: https://federicamontella.com/go/etoro/
2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)
3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/
4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)
5. Enjoy, it’s all automatic. You will make passive income 24/7
Let me know if you have any questions.
Federica Montella
eToro Popular Investor
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