Owing To Bank Turmoil And The ECB's Rate Hike, US Stocks Are Mostly Down

It was a relatively slow start to the week for Wall Street stocks as investors remained concerned about the banking sector after the European Central Bank raised interest rates by a significant amount.

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In early trading, First Republic Bank shares were down more than 30 percent following a Swiss central bank intervention. Credit Suisse's fortunes in the markets had reversed following the Swiss central bank's intervention, but other US regional banks also plunged.

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Within just 30 minutes of the market opening, the Dow Jones Industrial Average was down 0.6 percent to 31,677.89, an all-time low.

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In contrast, the tech-driven Nasdaq Composite Index edged up 0.1 percent to 111,439.94, despite the broad-based S&P 500 declining 0.2 percent to 3,883.01.

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Despite market turmoil following last week's swift collapse of Silicon Valley Bank, the European Central Bank's interest rates remained constant on Monday as it remained laser-focused on combating sky-high inflation, despite what has been an unprecedented rise in inflation worldwide.

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In addition to its large hike, the ECB said its policy toolkit will support banks in the euro area financial system in times of need.

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In the face of turbulence in the market, some analysts expect the Federal Reserve to hold rates steady as well, as the ECB makes its move a few days before the Federal Reserve meets.

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During the past few days, global financial markets have been oscillating, with investors trying to gauge how the problem affects the outlook for the monetary policy as well as the scale of the problem at issue.

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In an interview with B. Riley Wealth Management, Art Hogan said we need clarity coming into the new day, despite yesterday's significant bounce off the lows.

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"It will be interesting to see what the Fed does when the ECB raises rates," he said.