Friends
Rumors of trouble at Credit Suisse, the large European Bank, helped fueled more selling in bank stocks and stocks in general, but the truth is that Credit Suisse has been a very dubious bank since the great financial crises a decade and a half ago. Also, a tame PPI number combined with a soft Retail Sales number could add to the list of reasons that the Fed could possibly pause next week. Look, the Fed wanted to cool things down. In one week’s time, we’ve gone from a narrative that the economy was still too hot, and inflation was still the enemy, to we may have just begun a recession and deflationary pressure might enter the picture. Next week we’ll see how the Fed juggles all these knives.
As for today, by the close the Dow Jones Industrial Average was down 280 points to finish the day at 31,874. The S&P 500 was down 27 points to close at 3,891. The Nasdaq Composite Index was up 5 points to close at 11,434. Gold was up $12 to trade at $1,923 per ounce, while oil was down a whopping $3.10 to trade at $68.23 per barrel WTI.
It’s common that once you get an event like a bank failure of two, you will see some heightened volatility. We have in stocks, and we really have in bonds. Let’s see how the rest of the week plays out.
Have a nice evening everyone.
