What SVB means for markets

Employees stand outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California.

Justin Sullivan | Getty Images News | Getty Images

This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Two bank collapses spark a flurry of activity by financial regulators.

What you need to know today

  • Stock futures jumped on the news. S&P 500 futures rose 1.1%, the Nasdaq 100 futures added 1.2% and futures linked to the Dow Jones Industrial Average increased 265 points.
  • Then on Monday morning, regulators closed Signature Bank — one of the main banks to the cryptocurrency industry — citing systemic risks. All deposits will be made whole, according to Federal regulators.
  • As for the U.S. jobs number released on Friday — remember that? — it revealed that nonfarm jobs growth in the United States decelerated to 311,000 in February, lower than January’s 504,000 but still more than the forecast of 225,000. In signs that the labor market might be cooling, unemployment rate was higher than expected while wage growth slowed.
  • PRO A major inflation report and any potential fallout from SVB troubles will be what investors are looking out for next week. “It will be a major market mover and set the tone of the market,” said Michael Arone, chief investment strategist at State Street Global Advisors.

The bottom line

Silicon Valley Bank meltdown: Here's how it happened in real-time

Source Link

Share This Article

Leave a Comment