Economic Optimism After the Collapse of Silicon Valley and Signature Banks

Post date: 2023-03-13 17:05:13 GMT

AbleMarkets' Forecast and Analysis on the U.S. Economy

The collapse of the Silicon Valley Bank and, later, Signature Bank, put an unexpected damper on all things economic at the end of last week. However, today, AbleMarkets estimates that the optimism has rebounded with both institutional investors and HFTs pouring money into the U.S. markets. However, a not of caution is in order: long-term trends remain slightly negative for institutional flows and highly negative for HFT flows, which can forebode a turmoil in the short run.

The causes for institutional and HFT optimism are plentiful. Tomorrow (Tuesday, March 14, 2023, at 8:30 AM ET), Consumer Price Index numbers are expected to show a slight decrease. Consumer Price Index is an important measure of the health of the U.S. economy. It tells us how much prices have gone up or down in a certain period of time. This helps us understand how much money people have to spend, which affects the economy. When prices go up, people have to pay more for things, but when prices go down, people can buy more things. Consumer Price Index helps us keep track of the prices of things we need so that we can make sure the economy is doing well.

On Thursday, March 16, 2023, at 8:30 AM ET, Building Permits, Initial Job Claims and Philadelphia Fed Manufacturing Index are all expected to show good news for the U.S. economy. Building Permits are expected to stay steady; they tell us how much new construction is happening in the U.S., which helps us understand how the economy is growing. Initial Job Claims are expected to decrease; their figures show how many people are applying for unemployment benefits, with the higher number of employed people signaling a stronger economy. The Philadelphia Fed Manufacturing Index is expected to rise; the Index shows us how the manufacturing industry is doing in the U.S., which helps us understand how the whole economy is doing.

On Wednesday, March 15, 2023, however, Retail Sales figures are predicted to decline month-on-month. Retail sales figures are very important to the U.S. economy. They tell us how much people are spending on things like clothes, food, and other goods. This helps us to understand how the economy is doing, and it also helps businesses know how much money they can make. When people are buying a lot of things, it shows that the economy is doing well. When people are buying less, it means the economy might be slowing down. This helps us to make decisions about how to manage the economy.

The best way to stay up to date with all these economic indicators and pre-announcement institutional and HFT flows is to subscribe to AbleMarkets. AbleMarkets provides the latest data and analysis on the U.S. economy, giving users access to real-time insights and forecasts that can help them make better decisions. Subscribe to AbleMarkets today to stay ahead of the curve and make sure you are well-informed about the latest economic developments.