- US stocks advanced as risk appetite recovered from the banking sector's turmoil, with investors turning their attention to data on the Federal Reserve's preferred measure of inflation due this week.
- The S&P 500 surged back above 4,000 as technology and financial stocks led the benchmark index higher. The Nasdaq 100 had its best quarter since 2020, thanks to a rally in Micron Technology after the company issued a positive outlook for the quarter. Meanwhile, the Cboe Volatility Index reached its lowest level in three weeks.
- US Treasuries were little changed and the dollar strengthened as investors digested the latest Fed officials' remarks and looked ahead to core PCE data for the latest clues on how the Fed's interest rate path might change after financial sector turbulence upended market expectations.
- Financial stocks have been battered by the failure of three US banks this month, but they were rallying Wednesday, despite reports that the Federal Deposit Insurance Corp is considering a squeeze on large banks to help cover the nearly $23 billion in costs associated with the bank failures.
