As quarterly corporate earnings season begins, reports show a decline compared to last year.

With all three indexes up strong, bonds extend a four week downtrend.

The stock market roller coaster continues as failed banks get bought out.

While bonds rallied, the treasury yield and banks continue to fall

Markets spiral as 16th largest U.S. bank, SIVB fails

Investors drop an average of 2% for the month of February

Economic growth outdoes expectation causing inflation to slow, while another interest rate seems to be on the horizon.

As inflation continues and the Fed raises rates, we get mixed signals from year over year Consumer Price Index (CPI) and the Producer Price Index (PPI) reports.

Rate hikes persist as unemployment report is strong; the markets will be expected to respond to those reports.

As expected, the Fed raised interest rates by another 0.25% last week, as it continues to fight the battle against inflation. However, it is less what the Fed does, but more what the Fed says, as investors listen closely to the tone of the Fed’s speeches.

Leading Economic Indicators (LEIs) have historically been an accurate predictor of a recession, and those values are heading in that direction.

Over the past few months, inflation numbers have been decreasing, and the economy has been showing signs of slowing. In other words, the Fed’s program of raising interest rates is showing its impact on the economy and corporate earnings.

We are experiencing a tug-of-war between what the Fed has been saying and the hopes and speculation of the stock and bond markets. More recently, the markets have been responding very favorably to the hopes that the Fed’s rate hikes will soon conclude.