What impact did the week have on the market?
- According to market updates from Seeking Alpha, the week was turbulent for investors, with stocks and bond rates falling on Friday due to concerns about instability in the banking industry potentially leading to a global recession. The news caused investors to reduce their holdings of regional bank stocks, reversing Thursday's relief rally following a $30 billion deposit promise from a consortium of banks. Despite this negative turn, the S&P 500 finished 1.4% higher for the week, with the Nasdaq Composite gaining 4.4%, while the Dow Jones industrial average fell 0.15% on Friday, leaving it slightly negative for the week.
- On another note, CNBC reported that inflation in the United States fell for the eighth consecutive month, with the Consumer Price Index recording a 6.0% annual rate in February, the lowest since September 2021, and in line with economists' expectations.
- Finally, Yahoo Finance highlighted that the week's market volatility was driven by two U.S. bank failures and stresses at a midsize lender that secured a $30 billion deposit pledge from a consortium of 11 large banks. Additionally, a troubled European bank received emergency assistance from Switzerland's central bank.
Check out the Top 5 stocks in each industry:
What to expect for the markets next week?
- Fed Ahead: Current risks involving segments of the banking system have injected fresh uncertainty into the next meeting of the U.S. Federal Reserve, which is scheduled to announce its next move on interest rates on Wednesday. Earlier expectations for another rate hike of either a quarter percentage point or a half point have been thrown into doubt, with some observers suggesting the Fed may keep rates unchanged.?
- Further Data: We will expect data on new and existing home sales for February, along with a PMI survey reading from S&P Global due on Friday. We’ll also receive the latest inflation readings from the U.K. and Japan.
