Futures rebounded after data on US retail and producer prices

March 15 (Reuters) – U.S. stock index futures fell more than 1.5% on Wednesday but rebounded after a larger-than-expected fall in retail sales in February and a slower rise in producer prices, sustaining hopes for a less aggressive monetary policy on credit policy Fed.

The data showed that US retail sales fell by 0.4% in February compared to the previous month. Analysts expected a decline of 0.3%.

At the same time, the producer price index in the US increased in February by 4.6% year-on-year, against expectations of an increase of 5.4%.

New concerns about Swiss bank Credit Suisse hit investor sentiment, with the bank’s US-listed shares down 21.9% and likely to open at a record low after its biggest investor said it could not provide the lender with additional financial assistance.

Following the collapse of SVB Financial and the closure of Signature Bank, a series of emergency measures taken by the US authorities partially allayed concerns about the health of other banks, helping regional creditors recover from the previous session.

Shares of major US banks such as JPMorgan Chase & Co, Citigroup and Bank of America Corp lost 1.2% to 2.3% in over-the-counter trading.

“A new banking crisis is likely to force the Fed to hold off on interest rate hikes in March. It will take some time for the regulator to track the effects of this banking shock and postpone the fight against inflation for a while, said Peter Cardillo of Spartan Capital Securities.

“The prolonged fight against inflation is one of the reasons for the problems of Silicon Valley Bank and Signature Bank … The consequences of this situation will lead to increased uncertainty about the soundness of the American financial structure.”

Dow futures fell 1.92% at 15:42 Moscow time, the S&P 500 fell 1.94%, the Nasdaq 100 fell 1.56%.

The original news in English is available at the following codes: (Amruta Khandekar and Shubham Batra in Bangalore)


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