Why SVB's collapse is positive for the stock market's overall outlook

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 51%

Canada News News

Why the implosion of Silicon Valley Bank is actually a good thing for stocks

Silvergate Capital, and Signature Bank in recent days might make for scary headlines. But they could actually be bullish developments for stock investors.

Now, with the prospect of further rate hikes diminished, investors are scrambling to reassess what it means for two main drivers of stock gains: corporate earnings growth and risk appetite. Based on Monday's market action, it's positive: all three US indexes rose, with the more rate-sensitive Nasdaq pacing the gains with a 1.4% increase.

, leading the market to expect a 50-basis-point hike next week, followed by at least a couple more later in the year., and market expectations have started to lean towards something previously unthinkable: rate cuts later this year. That would be rocket fuel for stocks.Fast-rising interest rates throughout 2022 dinged company valuations and sent the broader stock market into a bear market. Now the exact opposite dynamic is now at play.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

I'm willing to show 10 lucky people on how to earn 0.90 BTC ($15,000)and more daily. No withdrawal fee You don't have to send funds to anyone Interest PM

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines