The AP on the Street 10th week of 2023

The AP on the Street

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

The weekly performance of S&P 500 Stocks

Our Two Least Performing 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.