Silicon Valley Bank’s announcement that it was raising capital on Wednesday caused a crisis of confidence leading to a traditional bank run. Consumers and companies are adding debt. New orders are growing again to start the year. A tale of two economies. The Federal Reserve still has credibility on inflation. Risk appetite remains muted.
1. Regulators moved quickly, shutting down Silicon Valley Bank on Friday:

Source: Bloomberg
2. Consumer credit has growth significantly but is still below pre-covid levels as a percentage of disposable personal income:

Source: Daily Shot 3/8/2023
3. Companies have held off on adding debt at higher rates but, as higher rates linger, they are beginning to borrow again:
4. As consumers continue to spend, companies will have to replenish their inventories:

Source: Daily Shot 3/6/2023
5. Not all companies over hired last year, many are still looking to add workers:
6. Despite fears of a recession, industrials stocks were trading near an all-time high at the beginning of the week:

Source: Daily Shot 3/7/2023
7. Oil producers are remaining disciplined on capital spending:
8. Hawkish sentiment from Jerome Powell sent interest rates higher and inflation expectations lower:

Source: Daily Shot 3/8/2023
9. The short-lived rally at the beginning of the year didn’t do much to change investor sentiment on equities: