US stock futures were flat on Thursday night. The action follows the aid rally that took place a few days ago.
Dow Jones Industrial Average futures were down 43 points, or 0.13%. S&P 500 and Nasdaq 100 futures were down 0.13% and 0.12%, respectively.
shares First Republic Bank was down about 24% in after-hours trading, a sharp reversal from its nearly 10% gain in the regular session.
Major averages edged higher in early Thursday trading. The Dow Added 371.98 points. The S&P 500 advanced 1.76%, and technologically heavy Nasdaq Composite increased by 2.48%.
The gains came after a group of banks said they would help First Republic A sign of confidence in the banking system with $30 billion in deposits. Major indexes were also boosted by Credit Suisse’s announcement that it will borrow up to $50 billion (about $54 billion) from the Swiss National Bank.
Investors are looking ahead to next week’s Federal Reserve meeting to see how the central bank will fight inflation amid turmoil in the banking sector.
“There’s a push in the market right now. A regional banking crisis is a big bad thing for the economy and the market. But the overreach that took place before the banking crisis was too wild and irrational by the Fed,” Infrastructure Capital Advisors said. CEO Jay Hatfield.
“Every cycle of Fed tightening shows weakness in the economy. We have this failure of FDIC insurance. We urge people to be a little cautious, especially until we hear what the Fed has to say,” Hatfield added.
Traders will focus on preliminary readings of the University of Michigan’s consumer sentiment index, as well as industrial and manufacturing production, to gain a better understanding of the economy ahead of next week’s Fed meeting.
