Traders were betting that chances of a 50-basis-point rate hike at the Fed’s March meeting were around 60 percent , according to CME Group’s FedWatch tool, up sharply from a probability of 31 percent before Powell’s Tuesday and Wednesday appearances in Congress.
While last week’s increased jobless claims may be “the first sign the labor market may be showing signs of loosening,” Mahajan wants to see “more data points to establish a trend.” And with February wage increases expected to rise 4.7 percent compared with January’s 4.4 percent , “it feels like its ticking in the wrong direction even if we just meet expectations,” said Mahajan who will be closely watching the wage data.The Dow Jones Industrial Average fell 543.54 points, or 1.66 percent , to 32,254.86, the S&P 500 lost 73.69 points, or 1.85%, to 3,918.32 and the Nasdaq Composite dropped 237.65 points, or 2.05 percent , to 11,338.36.
SVB closed down 60 percent at $106.04 after falling at one point by around 63 percent and hitting its lowest level since August 2016 after the lender slashed its 2023 outlook and launched a share sale to shore up its balance sheet.