Jamie's Hurricane

JPMorgan Chase CEO Jamie Dimon has been warning that a recession is coming. Today, ironically, the bank stocks took it on the chin sending the overall stock market lower because the economy is widely deemed to be too strong, and a solid gain is expected in February's payroll employment tomorrow. Furthermore, fears that next Tuesday's CPI report for February might be higher than expected raised concerns the Fed might be forced to raise the federal funds rate higher for longer.

The jitters started yesterday when Silvergate Capital, a central lender to the crypto industry, said that it is shuttering its banking operations. The stock plunged more than 36% in after-hours trading. Bankrupt crypto exchange FTX was a major Silvergate customer. Today, Silicon Valley Bank’s stock price plummeted 60% as investors rushed to sell shares after the bank announced that it would take extraordinary and immediate steps to shore up its finances. The bank is a major provider of credit to tech start-ups and their employees.