Today's Scoop:

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Hey friends, it's almost Friday. Here's what you need to know today...

1. Layoffs are still broadly low, despite the headlines.

2. Banks could face tighter regulations in response to the recent crisis.

3. Big Tech companies are driving the market.

S&P 500: 4,050.831Mo: +2% | 1Yr: -13% | 5Yr: +55%

The market continued drifting upward today amidst a light week for news. Next week, the March and quarter-end data will start to reveal how the economy's doing.

Layoffs are still broadly low, despite the headlines, given the overwhelming demand for workers. The Labor Department reported initial jobless claims inched higher last week to 195,000, but that's still below average pre-pandemic layoff rates.

Banks may soon have to be more selective with their lending and hold higher cash balances. Federal banking regulators have been calling on Congress this week to increase regulations for smaller banks after the collapse of Silicon Valley Bank this month. Less lending could slow the economy.

Big tech companies are driving the market rally. Apple and Microsoft have grown 30% and 20%, respectively, already in 2023 and are so big they make up 13% of the S&P 500 alone. [🤓] The computer chipmaker and AI champion, Nvidia, has nearly doubled in the past three months.

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• Starbucks' grilled by the Senate for union busting

• Uber dials up electrification

• Boeing's astronaut launch delayed again

• United Airlines boosts ground worker pay

• Macy's CEO set to retire after navigating crisis

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Big Tech & the S&P 500

The performance of Big Tech companies is critical to overall sentiment in the stock market. The Big Five - Apple, Microsoft, Amazon, Alphabet (Google), and Nvidia are so enormous compared to every other company that the fluctuations of their value drive the changes of "The Market" as a whole.

The S&P 500 index is the primary way people track whether "The Market" is rising or falling. It's a number that follows the value of the biggest 500 public companies in the US. As with most indexes, the actual number isn't as significant as the direction it moves. It helps us understand whether America's biggest corporations are growing. Daily fluctuations are very normal.

The Big Five alone count for over 20% of the total size of "The Market." The other ~495 companies make up the additional 80%. So the prices of those Big Tech companies significantly affect the perception of how the whole market is doing.