US stocks closed mixed for the week, reflecting the crosscurrents of stresses in the banking sector, worries that a steeper slowdown in the economy would follow, and hopes that the Fed would now be forced to pause its rate-hiking cycle. Sector returns within the S&P 500 Index varied widely: mega-cap tech stocks recorded strong gains while financials and energy shares suffered significant losses.

The Silicon Valley Bank story put the brakes on rising interest rates

SVB failure - the knock-on effect on US regional banks The KBW index of US regional banks lost nearly 18% of its value last week, following the failure of Silicon Valley Bank. Each week, the Syz investment team takes you through the last seven days in seven charts.

Stocks pulled back sharply over the week, as investors absorbed more hawkish talks from Jerome Powell and signs that the Fed still had work to do in cooling inflation. The S&P 500 Index fell on Friday to its lowest intraday level since January 5 as the selling accelerated after the index broke both its 100-day and 200-day moving averages. Financials led the declines and contributed to the pronounced weakness in value stocks.

Jerome Powell spoke yesterday in the US Senate to present the Fed’s semi-annual monetary policy report. The Fed’s Chair took this opportunity to reiterate the commitment of the Fed in bringing inflation lower.

After US rebound, global markets follow suit. The bond market takes another hit, while commodities underperformed compared to other major asset classes. Here are ten stories to remember from February 2023.

In the US, the tone was mixed from Fed members on the future of the Fed's monetary policy.

Main US equity benchmarks closed the week higher and regained some ground following their worst weekly decline in two months. Energy and materials shares outperformed. Economic reports were mixed. US durable goods orders posted their steepest decline since April 2020. The ISM Manufacturing PMI ticked higher in February for the 1st time since May (although it remained in contraction territory at 47.7) while services PMI fell slightly but less than consensus expectations and still indicated moderate expansion (55.1).

Chinese car exports on the rise, the Dow is down year-to-date, while inflation numbers came in higher than expected. Each week, the Syz investment team takes you through the last seven days in seven charts.

The Fed minutes essentially revealed that the process of tightening monetary policy is expected to continue at least until the second quarter of 2023.