Stock Market Surges To Weekly Highs; Warren Buffett Makes Big Move

The stock market traded higher Thursday after regional banks bounced. Big Tech and the Nasdaq composite bucked the early downward tide, trading higher, while small caps shed opening losses. Regional bank stocks got some relief as First Republic Bank (FRC) may get a new lifeline.

Treasury Secretary Janet Yellen testified before the Senate Finance Committee Thursday morning, insisting the banking system remains strong.

JPMorgan Chase (JPM), Morgan Stanley (MS) and other big banks are in talks for a potential deal with First Republic Bank. This would include a large capital infusion to the strained regional bank.

The CME FedWatch Tool now expects a 83% chance of a 25-basis-point rate hike at the March meeting. Nearly 17% expect no change in rates.

NYSE and Nasdaq volume were lower than midday Wednesday.

The Dow Jones Industrial Average added 0.4% while the S&P 500 rose 1.2%. The Nasdaq composite gained 1.9%.

The Russell 2000 traded 0.7% higher after a loss of more than 1% early Thursday. The 15% regional bank component weighed on the small-cap index.

The Dow and S&P 500 tested resistance at their 50- and 200-day moving averages, while the Nasdaq reclaimed those critical price levels.

The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) added 1.7%. The Innovator IBD 50 ETF (FFTY) gained 2%.

The 10-year U.S. Treasury yield edged up 2 basis points to 3.52%.

Economic Data Moves Stock Market

Crude oil inched up 0.1% to $67.62 per barrel. Bitcoin futures rallied 1.7% to $24,900.

European stock markets rose, with the German DAX up 1.8% and Paris CAC adding 2.5%. The London FTSE gained 1.1% in afternoon trading.

The European Central Bank raised interest rates by 50 basis points, taking the key rate to 3% as expected.

Initial jobless claims for the week ending March 11 came in at 192,000 vs. Econoday’s 205,000 consensus, and lower than last week’s revised 212,000. The data shows continued strength in the jobs market.