Zacks
The Zacks Analyst Blog Highlights Blue Bird, Comfort Systems, Salesforce, Deckers Outdoor and Magenta Therapeutics
Zacks Equity Research
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For Immediate Release

Chicago, IL – March 31, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Blue Bird BLBD, Comfort Systems USA FIX, Salesforce CRM, Deckers Outdoor DECK and Magenta Therapeutics MGTA.

Here are highlights from Thursday’s Analyst Blog:

Easing Banking Fears, Rate-Hike Pause Boost Markets: 5 Picks

Market sentiment took a beating all through March after a crisis broke out in the banking sector due to the collapse of the Silicon Valley Bank. The lender’s pursuit to raise fresh capital was crushed following run-on deposits.

Investors panicked that this may lead to a broader financial contagion, with more depositors pulling money out of their banks. At the same time, fears of a bank run forced lenders to stop providing loans and issue fewer mortgages, raising the threat of an imminent economic cooldown.

However, the stress in the banking sector somewhat eased this week and helped the major bourses scale upward. The recent closure of the Silicon Valley Bank raised hopes that the risk of contagion has been limited. The First Citizens BancShares agreed to acquire the Silicon Valley Bank’s $72 billion assets, per the Federal Deposit Insurance Corporation (“FDIC”).

To top it, the banking regulators assured depositors of the failed Silicon Valley Bank that they will have access to their deposits, thereby curbing a systematic contagion fear among depositors of other regional banks. The FDIC’s deposit insurance fund aims to cover both insured and uninsured depositors of the Silicon Valley Bank.

Meanwhile, the Federal Reserve has established a new Bank Term Funding Program that aims to protect banks in times of emergencies. The Fed will allow banks to take loans for up to one year by pledging mortgage-backed securities.

FDIC Chair Martin Gruenberg, Treasury Secretary Janet Yellen, and Fed Chair Jerome Powell assured that the federal government has taken all the necessary steps to strengthen the banking system and that policymakers have the means to tackle any bank meltdown.

But it’s not just easing concerns in the banking sector that lifted the broader stock market lately. The Fed’s intention to press the pause button on interest rate hikes also improved sentiment further. The Fed officials may have raised interest rates by 25 basis points in their last meeting, but the CME Group’s FedWatch tool noted that almost 59.5% of market pundits expect no rate hike in May.

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