Bank shares fell on Monday due to the massive sell-off of equities by a US investment group, this led to down spiral from two big investment banks (Credit Suisse and Nomura) which left traders invigorating for further consequences.
The S&P 500 Index decreased by (-0.087%) to close at 3,971.09 index points on Monday. The loss was mitigated by a performance from technology stocks. However, ViacomCBS, faults a major impact as it had the largest exposure to Archegos margin call.
- The S&P 500 Index year-on-year currently stands at 53.73%
- Stocks in top US banks floundered, with Morgan Stanley closing at 2.6 % lower and Citigroup dipping by 2%.
- European peer Deutsche Bank sank by 3.3%
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Top gainers
- CenterPoint Energy up 3.10% to close at $22.65.
- Molson Coors Brewing B up 3.00% to close at $52.91
- Facebook up 2.76% % to close at $290.82
- Twitter Inc up 2.74% to close at $62.94
- Clorox up 2.60% to close at $195.20
Top losers
- ViacomCBS down 6.68% to close at $45.01
- Alliance Data System down 5.58% to close at $111.77
- Capri Holdings down 5.72% to close at $47.31
- Tapestry down 5.53% to close at $39.49
- Macirich down 5.01% to close at $11.57
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Outlook
The S&P 500 Index started the first trading session of the week on a bearish trend following the market sell-off on Friday. The great performance of technology stocks has been a mitigating factor but the bank sell-off effects may still linger
- Amid the banks sell-off, most analysts still project a bullish momentum for the S&P 500 due to its historical bullish trend.
- Nairametrics, however, advises cautious buying in this era of growing uncertainties
