As the S&P 500 Index recovers from losses after the Silicon Valley Bank (SVB) collapse, stocks are nearing highs for the year.
- On Tuesday, the S&P 500 closed up 8.2% higher than at the end of 2022. Last year, it fell 19.4%, Axios reports.
- Ten-year Treasury note yields are now around 3.6%, down from 4% in March.
- The Nasdaq Composite Index, heavily affected by the tech industry, will be up 16% in 2023.
Why it’s news
The market suffered after the financial chaos of the SVB collapse, but it appears to be recovering. Longer-term interest rates have declined this year, which has resulted in a boost for particular tech stocks, Axios reports.
Companies like Meta Platforms and Alphabet that fall under the “communications services” sector are performing well so far this year. Both are up over 20%.
Financials, however, are down around 2.6%, making them the worst performers in the market so far. Their poor performance is expected after the recent banking fiasco. Another California lender, First Republic, has struggled after being caught up in the turmoil of SVB. Its shares have fallen around 90% in 2023, Axios reports.