On heels of SVB, Deutsche Bank price drop keeps market concerns alive

Benzinga
·2 min read

The S&P 500 experienced another volatile week of trading amid ongoing concerns over the stability of the banking industry.

On Friday, Deutsche Bank shares dropped more than 7% after the price of the bank's credit default swaps jumped, indicating market concerns about the bank's health. The Deutsche Bank sell-off came after Swiss regulators forced UBS to acquire Credit Suisse as part of an emergency rescue last weekend. The U.S. banking sector has dealt with its own liquidity issues in recent weeks, including the failures of SVB Financial, Signature Bank and Silvergate Capital.

Security guards let individuals enter the Silicon Valley Bank's headquarters in Santa Clara, Calif., on March 13, 2023. The Federal Deposit Insurance Corporation has taken over the bank after failed attempts to sell it to healthier banks.
Security guards let individuals enter the Silicon Valley Bank's headquarters in Santa Clara, Calif., on March 13, 2023. The Federal Deposit Insurance Corporation has taken over the bank after failed attempts to sell it to healthier banks.

On Wednesday, the Federal Open Market Committee raised its fed funds target range by 0.25% to between 4.75% and 5%. In its updated economic projections, the Federal Reserve raised its outlook for 2023 core personal consumption index inflation to 3.6%, up from 3.5% in December.

On Thursday, Ford reported its electric vehicle business lost $2.1 billion on an operating basis in 2022. Ford reassured investors the EV losses were more than offset by $10 billion in annual operating profits from the company's internal combustion engine auto sales and fleet business.

On Tuesday, Amazon announced another 9,000 layoffs in addition to the 18,000 job cuts the company executed between November and January in its ongoing cost-cutting efforts.

Game on again for GameStop

Shares of video game retailer GameStop gained 35% on Wednesday after the company reported its first profitable quarter since January 2021.

In the week ahead, investors will see more quarterly reports from Carnival on Monday, Micron Technology and Walgreens Boots Alliance on Tuesday and BlackBerry on Thursday.

Analysts currently project 17% upside for the S&P 500 over the next 12 months, according to FactSet.

Economic numbers to watch

Investors will get key economic updates on Friday when the Bureau of Economic Analysis releases its February personal consumption expenditures price index reading and the University of Michigan releases its March consumer sentiment index reading.

Benzinga is a financial news and data company headquartered in Detroit.

This article originally appeared on Detroit Free Press: On heels of SVB, Deutsche Bank price drop keeps market concerns alive