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Wall street remains stable.

 Chaos in the U.S. banking sector has caused bond markets to experience record volatility this month, prompting the Federal Reserve to abandon plans to raise interest rates faster. But the crisis has no impact, according to moves in the major stock indices on Wall Street. The S&P 500 has dropped just 0.7% this month, and volatility indicators indicate investors are not expecting any wild swings over the coming weeks. It is pretty impressive just how much of a strong performance the market has had. Traders and investors largely agreed on the factors that helped keep the S&P afloat during the upheavals, which began with the failure of the Silicon Valley bank.

Cautionary positioning ahead of the crisis limited losses, and the calm on the index floor has obscured a major reversal in some sectors - banks, most notably. It hit a high of nearly 31 just after the SVBs crash but has since fallen below 23, a little higher than its long-term average. The stock's lighter position sharply contrasts the U.S. Treasury market, where many investors made similar bets about rising interest rates. When the SVBs crash upset expectations about where rates were going, reversals in bond prices were compounded by investors scrambling to unwind their earlier positions. This volatility provided further impetus for stocks since lower yields increased the relative attractiveness of longer-term corporate earnings.

Their significant gains were offsetting problems for smaller firms. So broad indexes are holding steady, and below the surface, the breadth is breaking >>. If each of the companies in the S&P 500 had the exact weighting, this index would have lost over 6 per cent so far this month. The Russell 2000, an index of smaller-cap stocks, is down 9 per cent. Kosoglyadov said that shares of smaller companies were suffering because of concerns about problems in the banking sector, which will cause credit shortages, making borrowing more difficult, and impacting economic growth.

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