- The S&P 500 Index recovers from daily lows and remains below 3,700.
- Shares of Bing banks rise decisively after the Fed stress test.
- The fall in crude prices weighs on the main energy stocks.
After starting the day in negative territory on Monday, the S&P 500 index it rallied and was last seen down 0.55% on the day at 3,690.
S&P 500 Major Changes
The US Federal Reserve announced the results of its second stress test of the year and said that America’s largest banks have enough capital to support more than $ 600 billion in losses from a sharp economic downturn. The Fed also added that lenders will be able to pay dividends and buy back shares on a limited basis, Reuters reported.
Driven by this development, financial stocks gained ground on Monday. At the time of writing, Goldman Sachs Group Inc (GS: NYSE), Morgan Stanley (MS: NYSE), JPMorgan Chase & Co (JPM: NYSE), Capital One Financial Corp (COF: NYSE) and Bank of America Corp ( BAC: NYSE)) shares rose between 6.8% and 4%.
On the other hand, major energy stocks are suffering heavy losses on Monday as renewed coronavirus fears weigh heavily on crude prices. Right now, Occidental Petroleum Corp (OXY: NYSE) is the largest percentage of daily decline, losing 5.5% to $ 17.51. Additionally, NiSource Inc (NI: NYSE) and Diamondback Energy Inc (FANG: NASDAQ) shares are down about 4%.
Finally, Tesla Inc (TSLA: NASDAQ) is down 4.1% on its debut to $ 666.85.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
