Market Wrap – Stocks Recover

United States stocks recovered in early trading Tuesday, with regional bank stocks leading the gains in the S&P 500. European markets were lower midway through the day but picked up in the US session and closed at the best levels of the day.

The Dow Jones Industrial Average gained 39 points or 0.1%, while the S&P 500 was up 0.2%, and the Nasdaq Composite was up 0.3%. All three benchmarks were in the red to start the day.

In the foreign exchange market the US dollar index gave back some ground after strengthening during the European session. Gold also gave back its earlier price gains.

As well as fear over the inflationary environment subsiding the World Bank upgraded its outlook on global growth since the start of the year. Notably, outlook has improved since January, when everyone started the year calling for a global recession.

The World Banks Forecasts 2024 global growth at 2.4% vs 2.7% prior, and now sees 2025 growth at 3.0%. It also projects US growth at 1.1% vs 0.5% in January and 2024 US growth at 0.8% vs 1.6% in Jan.

In China it has projected 2023 growth at 5.6% vs 4.3% in January and now 2024 China growth at 4.6% vs 5.0% in Jan. The World Bank adds that global inflation to edge lower but remain above target in many countries in 2024.

The crypto market was also in focus as the regulators came for Binance and today it’s Coinbase, as the SEC says Coinbase has operated as an unregistered broker since at least 2019.

Additionally, the SEC added that crypto assets that Coinbase makes available put Coinbase’s operating’s squarely within the purview of the securities laws.

Gary Gensler at the helm of the SEC added that it takes time to build a case, we do things by the book “Exchanges are commingling a number of functions” and “Platforms offer a web of deceptions, with some individuals trying to evade law.”