5 things to know before the stock market opens Tuesday

Here are the most important news items that investors need to start their trading day:

Investors are looking for clarity after a few days of dramatic turns. Monday was a mess as markets tried to figure out the ramifications of the Signature Bank and Silicon Valley Bank shutdowns. The Dow finished down, marking its fifth straight losing day, while the Nasdaq managed to squeak out a slight win. Regional bank stocks took a huge hit as the government’s actions to limit the fallout from Silicon Valley Bank and Signature failed, at least for the moment, to reassure investors and depositors alike. First Republic, for instance, fell a whopping 62% on Monday. Yet, those stocks could be in store for a rebound Tuesday. Follow live markets updates.

The Federal Reserve is still on track to raise its benchmark interest rate by a quarter point next week, despite the second- and third-biggest bank failures in history. As of Monday, even with the turmoil in the market, especially among regional banks, traders saw an 85% probability that the rate hike would still happen as the central bank tries to cool inflation. Goldman Sachs stood out as the contrarian voice, however, arguing that Fed Chairman Jerome Powell and crew will hold off for now on a rate increase. “We think Fed officials are likely to prioritize financial stability for now, viewing it as the immediate problem and high inflation as a medium-term problem,” Goldman said in a note to clients. The Fed’s next policy-setting meeting is scheduled for March 21-22.

Speaking of inflation, the…