The Strength of the Market is: Strong
The shutdown of Silicon Valley Bank sent shock waves through Financial Markets last week - the Dow Jones fell 4.44%, the S&P dropped 4.55% and the Nasdaq lost 4.71%. The bank failure is fueling concern over whether the contagion will spread beyond Silicon Valley Bank. In the attempts to calm concerns, over the weekend, the Treasury Department, Federal Reserve and FDIC announced a banking system rescue package. Still, investors should expect stock market vulnerability, with potential for wide swings. Economic reports from last week came back mixed: •Consumer Credit - lower than expectation •Private Employment - higher than expectation •Total Employment - higher than expectation •Job Openings - higher than expectation •Jobless Claims - higher than expectation This week, investors will look for guidance from economic reports like Small Business Optimism, Retail Sales, Manufacturing, Housing, Consumer Sentiment and Jobless Claims.