Bankin' on it… JPMorgan Chase, Citi, and Wells Fargo are on deck to report Friday as the US banking system undergoes a tectonic shift. “Too big to fail” banks saw an influx of deposits after the failures of regional banks like Silvergate, SVB, and Signature Bank. Meanwhile, customers have moved $300B+ into money market funds over the past few weeks — which could cut into big banking profits. In Q4 of last year, most major banks beat expectations. For the latest quarter, analysts expect higher revenues and profits.
Waiting for a #Powse… Powell pause. On Wednesday, the US gets its inflation report card for March. Investors always have eyes on the Consumer Price Index, but this one could be extra spicy: it’s the first since the banking turmoil, and the last before the Fed’s next rate-hike decision meeting on May 2. After banking worries and underwhelming labor data, traders were betting on a 60% chance that the central bank won’t hike interest rates. Some even expect that it’ll start cutting this year. But if inflation comes in hot, such hopes could be dashed.