Market Signals and Risks Amid Turmoil and Inflation Fight

The collapse of Silicon Valley Bank, a midsize bank that predominantly served start-ups and venture capital firms, incited chaos in the markets and prompted fears of a financial crisis. While the S&P 500 rose this week, oil prices fell along with bond yields, signs that investors are worried about the economy. The yield on two-year U.S. government notes plummeted, indicating that the Fed may need to start cutting interest rates sooner than expected. A slide in commodity prices this week shows that investors are concerned about the global economy. For the time being, a semblance of stability has returned, but investors remain on tenterhooks about the potential for more damage to emerge.