“The market is flitting from theme to theme, unveiling underlying fragility,” JPMorgan Chase & Co. strategists including Meera Chandan wrote in a note to clients Friday.
Traders are steeling themselves for the risk of more turbulence after the biggest US bank collapse since the 2008 financial crisis sent shockwaves through markets.
The unravelling of SVB Financial Group’s Silicon Valley Bank was driven in large part by the fallout from higher US interest rates, prompting questions about whether other institutions might also be at risk as investors debate just how much further the US central bank is likely to tighten policy. Meanwhile, the outlook for the economy — and likely policy responses to it — remain in flux.
