Silicon Valley Bank's failure is good news for stock market: Fundstrat

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Why one firm says the failure of Silicon Valley Bank could be a positive for the stock market

Experts say the bank's failure represents the latest casualty of the Fed's monetary tightening, which has hit bond prices and popped the bubble in tech stocks. But it could force the Fed to stop rate hikes, Lee said.

"In other words, we think the Fed could move away from 'higher for longer' to a possible pause," he said, adding that stocks are going to be hit in the near term by SVB aftershocks. at the next policy meeting later this month. Meanwhile, markets overall still see an increase next week but dialed back their expectations: after previously betting on a 50-basis-point rate hike, investors are now pricing in 75% odds of a 25-basis-point increase, according to the CMEThat's already had a slight a impact on the market, with all three benchmark stock indexes briefly rising Monday morning as investors braced for a softer policy move.

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one firm

Government printed too much money and we all know how expensive printer ink is 😂

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Stock Market Today: Regional Bank Shares Tumble After Regulators Announce Silicon Valley Bank PlanRegional bank shares slid premarket and investors piled into the safety of bonds after regulators tried to limit the damage from Silicon Valley Bank's collapse creditscom creditscom creditscom
Bron: WSJ - 🏆 98. / 63 Lees verder »