The AP on the Street 10th week of 2023

The last week was terrible. Chairman Powell’s hawkish-like comments and the failure of Silicon Valley Bank led to a plunged market.

This week, there are the CPI and the PPI. So, let’s take a look at what happened last week:

• Tesla cut its prices of cars.
• Meta announced another lay-off for thousands (could reach 13% of its workforce).
• Chairman Powell said that the economy’s strength suggests a higher-than-expected terminal rate.
• Chairman Powell said the historical record warns strongly against premature loosening (concerning the war with inflation).
• Chairman Powell said they would stay in the course until the job was done.
• Chairman Powell said rates are likely to go higher than expected.
• US2YR passed the 5% mark for the first time since 2007 after the testimony.
• The dollar soared after the hawkish comments.
• JOLTs came out 10.824 million —324,000, better than expected.
• President Biden is insisting on a 25% billionaire tax.
• Xi Jinping has been elected for his third term as president.
• Bitcoin went under the $20,000 mark.
• US Unemployment rose to 3.6% —20 basis points higher than expected.
• Silicon Valley Bank stocked crushed, and the bank is closed by California Regulators —seized by the FDIC.
• Janet Yellen said she has complete confidence in banking regulators and the American banking system is safe, amid the SVB crisis.
• Silicon Valley Bank is now the most significant failure since the 2008 financial crisis.
• DOW suffered the worst week since June.
• Silicon Valley Bank’s rapid collapse in 2 days created concerns in the banking industry.
• US Senator Menendez said they are not considering a bailout for the SVB.

Overall Market Indexes & Commodities Moves (Weekly) (By taking the opening price on Monday and closing price on Friday, using MSN Money)

DOW = -4.9% 

S&P 500 = -5.1% 

NASDAQ = -5.4%

RUSSELL 2000 = -7.8%

Gold = 0.7%

Silver = -2.9%

Oil = -4.9% 

The weekly performance of S&P 500 Stocks

Our Two Least Performing Stocks:

The reason for both MET and AIG stock’s decline was SVB’s collapse since they both are insurance companies.

TIL: What is a bailout?

A bailout is when a business, an individual, or a government provides money and/or resources (also known as a capital injection) to a failing company. These actions help to prevent the consequences of that business’s potential downfall, which may include bankruptcy and default on its financial obligations.

Important data/ decisions that will be published next week:
The CPI and the PPI

The last week was really shocking for us as well. Despite many banking regulations, a vast bank rapidly collapsed again, which might lead to a more significant crisis.

We will see how the investors will behave after all of the data and decisions. Stay tuned.

DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.