Why Bank Stocks Dropped Sharply Yesterday
What’s in Today’s Report:
- What’s Happening with the banks, Silvergate and Silicon Valley Bank
Futures are slightly lower following Thursday’s steep afternoon selloff and as nervous investors look ahead to the jobs report.
Economically German CPI met expectations (8.7% y/y).
Silicon Valley Bank (SIVB), which is now at the heart of the crypto/VC bank turmoil, fell farther overnight and that stock needs to stabilize for markets to recoup yesterday’s losses.
Today there are two important events to watch.
The first is the jobs report, and expectations are as follows: E: 215K Job Adds, 3.4% Unemployment Rate, 0.3% m/m/4.7% yoy Wages. Especially after yesterday’s selloff, markets need a “Just Right” number to reduce rate hike expectations. Second, markets will be looking for a business update from SIVB about their capital raise and sustainability going forward, and if the bank shored up its finances, that would likely create a solid rally in stocks.
