Markets have started pricing in Fed rate cuts of 75 basis points by the year's end as SVB's collapse creates panic about other banks

• The CME FedWatch Tool shows that a more investors are expecting interest cuts later this year.
• After an expected hike of 25 basis points next week, odds point to 75 basis points of cuts.
• This follows Silicon Valley Bank's closure, which set off fears that more lenders will fail.

Silicon Valley Bank's demise has put pressure on the Federal Reserve to rethink its economic tightening, and markets are pricing in a sharp pivot to rate cuts this year. 

The CME FedWatch Tool, which looks at 30-day fed fund futures contracts to gauge what investors believe is the possible trajectory of rates, still shows expectations for more one increase next week.