NEW YORK, March 10 (Reuters) – A critical inflation report next week will test a U.S. stock market already consumed by worries over Federal Reserve hawkishness and potential fallout from the largest bank failure since the financial crisis.
Friday’s mixed U.S. jobs report eased some worries about big rate hikes, days after Fed Chair Jerome Powell warned that policymakers may raise rates higher than expected if upcoming data showed the economy remains hot after nearly a year of tightening.
A hotter-than-expected consumer price report on Tuesday, however, could reignite fears of jumbo-sized Fed rate hikes like those that rocked markets last year. That would be unwelcome to a market on tenterhooks following this week’s failure of SVB Financial Group (SIVB.O), which does business as Silicon Valley Bank.
Approval – Sully
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Article URL : https://www.reuters.com/markets/us/wall-st-week-ahead-inflation-data-deck-markets-hit-by-worries-about-fed-banks-2023-03-10/