Today's Scoop:

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Hey friends, hope you had a great weekend. Don't miss our piece on what's happening with banks.

Here's what you need to know today...

1. The banking crisis is better, but not over.

2. Consumers are losing confidence.

3. Oil prices have tumbled on fears of a recession.

S&P 500: 3,951.571Mo: -1% | 1Yr: -11% | 5Yr: +53%

The market rebounded this week as investors found hope that the bank crisis might be contained.

Recent moves from regulators to insure depositors, force mergers, and make money available have lifted confidence in the banking system and stalled the bank runs. [🤓] Comments from US Deputy Treasury Secretary Wally Adeyemo and other officials indicated that US bank deposit outflows have slowed or even reversed. Check our deep dive from this weekend and our first two scoops today to learn more.

Consumers are losing a little confidence in the economy, particularly around the banking concerns and stubbornly-high living costs. The University of Michigan's consumer confidence survey index fell for the first time in four months. People expect inflation to continue falling, though, which can be self-fulfilling.

Oil prices fell to their lowest level in 15 months last week as traders feared the banking crisis would spark a recession. Any freeze in business activity would mean less demand for energy. Less demand leads to lower prices.

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• UBS buys rival Credit Suisse in historic bank deal

• First Republic battles a bank run [🤓]

• Hormel Foods builds a childcare facility for its workers

• Shell says it's not responsible for oil and gas emissions

• FedEx boosts profit on lower costs

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Bank Run (Run on the bank)

When too many people try to withdraw their money from the same bank at the same, that's called a bank run. Banks don't typically hold much cash on hand. They take your deposits and lend that money out to clients. They also often buy investment assets rather than keep the money in cash.

If the bank receives too many withdrawals too quickly, it must sell its investment assets to cover the withdrawals. If that doesn't cover the withdrawals, the bank may risk closure. No bank can survive a bank run, so customers must remain confident in the bank's financial stability.

The Federal Deposit Insurance Corporation (FDIC) insures all deposits up to $250,000 per banking institution to provide a baseline of trust for depositors.

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