- Following assurances from authorities about financial stability and growing speculation that central banks will have to stop raising rates to prevent a recession, stocks rose on Friday, despite a reversal in the bank slide that had rattled markets earlier in the day.
- Following a 1% drop earlier in the session, the S&P 500 recovered and recorded its second consecutive week of gains. A measure of financial heavyweights in the United States has risen from its lowest level since November 2020. The recovery was led by battered regional lenders, with Citizens Financial Group and Zions Bancorporation contributing at least 2.9%. First Republic Bank fell again, bringing the year's loss to 90%.
- Following the recent failure of some US regional lenders and the near-collapse of banking giant Credit Suisse Group AG before its government-brokered takeover by rival UBS Group AG, global authorities have continued to try to restore calm in financial markets and among bank depositors.
- Three officials said this week's tightening was clearly needed to rein in an economy that was running hotter than expected, echoing Powell's determination to restore price stability. St. Louis Fed President James Bullard also stated that he now expects rates to rise to 5.625% this year, which is 50 basis points higher than his colleagues' median projection.
- According to Bank of America strategists, investors are fleeing to cash in the largest rush since the outbreak of the pandemic, as concerns about an economic slowdown mount. Equity and credit markets are expected to fall in the coming months.
