On Thursday 09/03/2023, U.S. stocks closed significantly lower, primarily due to a sharp one-day drop in the financial sector. Investors were waiting for Friday’s employment data for February, which would help determine the size of the interest rate hike that the Federal Reserve may impose at its next meeting in two weeks. Despite early morning gains, U.S. stocks ended in the red, as investors fled the bank sector following SVB Financial Group’s asset sale and Silvergate Capital Corp.’s decision to wind down its crypto banking operations.
In early March, the number of Americans applying for unemployment benefits surged to a 10-week high of 211,000, surpassing the 195,000 new applicants that economists surveyed by the Wall Street Journal had expected. Investors are now focusing on Friday’s closely watched Department of Labor report on February jobs, where economists polled by the Wall Street Journal expect the creation of 225,000 jobs.
US treasury yields also fell, with the yield on the 2-year note dropping 16.4 basis points to 4.9% from 5.064% on Wednesday, marking the largest one-day decline since Jan. 6. On Thursday, President Joe Biden revealed plans for government spending and higher taxes on the wealthy. He outlined plans to decrease U.S. deficits by nearly $3 trillion over ten years by increasing taxes on those earning over $400,000 a year.
India’s pharmaceutical market recorded its strongest-ever double-digit growth in fiscal 2023 after reaching the lowest point in January, with sales increasing by 20.3% YoY in February, compared to a 0.2% YoY decline in February 2022 and 2.3% growth in January this year, according to data from the All Indian Origin Chemists and Distributors.
Asian markets traded lower after the sharpest decline in U.S. equities in two weeks, following a rout in bank shares. Nifty, India’s benchmark stock index, ended in the negative on March 9, pulling down by negative global cues. At the close, Nifty was down 0.93% or 164.8 points at 17589.6, failing to cross 17800 in this move and making a lower top, which could indicate poor performance for the large caps. Nifty could now remain in the 17322-17681 band for the near term.