S&P 500 Logs Weekly Loss As Investors Digest Latest Jobs Data – SPDR S&P 500 (ARCA:SPY)
March 10, 2023 4:00 p.m | 2 minutes read
The SPDR S&P 500 ETF Trust (NYSE:SPY) traded lower on a volatile week as concerns about the US regional banking industry rocked Wall Street.
On Thursday, SVB Finance Group (NASDAQ:SIVB) announced plans to raise $2 billion of capital to offset $1.8 billion in losses from bond sales, sending the stock down 60% on the day. SVB shares plunged again on Friday before the stock and the company’s were halted Silicon Valley Bank was closed by the regulators.
On Wednesday, cryptocurrency lenders Silvergate Capital Corp (NYSE:SI) announced that it is liquidating its assets and winding down its operations. Silvergate is the latest victim of the aftermath of the collapse of Sam Bankman Fried‘S FTX Crypto exchange in November 2022.
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In his semi-annual monetary policy report to Congress on Tuesday and Wednesday, the Federal Reserve Chairman Jerome Powell said the latest US economic data “came in stronger than expected” and the Fed will likely be forced to raise interest rates “higher than previously expected”. Stocks tumbled after Powell’s comments as investors braced for the Fed to hike rates by 0.5% at its next meeting later this month.
On Friday, the Labor Department reported that the US economy added 311,000 jobs in February, well above economists’ estimate of 200,000 new jobs. U.S. wages rose 4.6% year-on-year, while the unemployment rate rose to 3.6% from 3.4%.
Food gone bad: Shares in an organic and natural food retailer United Natural Foods Inc (NYSE:UNFI) is down more than 20% on Wednesday after the company cut its 2023 earnings guidance and dropped its long-term financial targets.
Investors will see more quarterly reports in the coming week lennar corp (NYSE:LEN) on Tuesday, Adobe Inc (NASDAQ:ADBE) on Wednesday, fedex corp (NYSE:FDX) on Thursday and Xpeng Inc – ADR (NYSE:XPEV) on Friday.
According to FactSet, analysts cut their earnings estimates for the S&P 500 for the first quarter by 5.7% year-to-date.
Economic numbers: Investors will get key economic updates on Tuesday when the US Department of Labor releases its February CPI and on Wednesday when the Census Bureau releases its February US Retail Sales report.
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