stock futures held steady in overnight trading monday after the market staged a relief rally on the hope that the banking turmoil would be contained futures on the dow jones industrial average were flat sp 500 futures and nasdaq 100 futures were also little changed the bluechip dow rallied more than 380 points on monday while the sp 500 gained 09 the action came a day after a forced takeover of credit suisse by ubs which was engineered by the swiss government investors also welcomed news that jpmorgan chase could be advising embattled first republic bank on strategic alternatives first republic bank sold off another 47 during the session extending its monthtodate decline to 90 as the collapse of silicon valley bank made investors worried about other banks with large uninsured deposit bases other regional banks rebounded from big losses in the past week the spdr regional banking etf kre rose 1 monday after dropping 14 last week with pacwest first citizens and fifth third bancorp among the names leading the rebound bank selling appears exhausted and it would take the emergence of fresh deposit problems at a new name to bring out incremental supply although theres very little interest to step in and buy the group especially the regionals adam crisafulli founder of vital knowledge said in a note investors now expect a slower pace of tightening from the federal reserve in light of the banking crisis traders now are pricing in a 77 chance of a quarterpoint rate hike when the fed wraps its twoday policy meeting on wednesday according to cme groups fedwatch tool the probability of a pause is at 23 risks of contagion are rising and could push the fed to pause the current rate hiking cycle although this is not our base case said jeffrey roach chief economist at lpl financial the fed will likely signal they are near the end of their rate hiking campaign as recession risks increase and inflation pressures decrease