![]() SVB was heavily focused on the tech and venture capital space, which was flooded with interest during 2021. Seiberg compared SVB to the collapse of crypto-focused Silvergate Capital, which announced on Wednesday that it will shut down operations and liquidate its bank. Financial regulators closed SVB earlier today and took control of its deposits, the Federal Deposit Insurance Corp. "We continue to expect regulators to revamp liquidity rules in response to this failure, but do not expect any change for how most banks treat unrealized losses," analyst Jaret Seiberg wrote in a Friday note to clients. Investment bank TD Cowen believes Silicon Valley Bank's failure is more about its "unique business model" rather than broader issues in the U.S. Lea la cobertura del mercado de hoy en español aquí. Payrolls increased more than expected, but investors focused on the smaller-than-expected gain in wages, which may cause the Federal Reserve to rethink its aggressive stance on rate hikes. The turmoil among bank stocks overshadowed a February jobs report, which gave some hints that inflation could be slowing. "This is gamebook play, where traders and shorter term investors don't want to be long over the weekend," said Rich Steinberg, chief market strategist at The Colony Group. Goldman Sachs and Bank of America fell 4.2% and 0.9% respectively. Some bellwether bank stocks suffered smaller losses even as SVB's fallout wreaked havoc on regional names. First Republic dropped 14.8%, and PacWest shed 37.9%. Several bank stocks were repeatedly halted on Friday, including First Republic, PacWest and crypto-focused Signature Bank. The failure, she added, is also fueling concern among investors over whether the contagion spreads beyond SVB. bank collapse, the biggest bank failure since 2008, inevitably that's going to spook the market," said Sylvia Jablonski, CEO and chief investment officer of Defiance ETFs. For the week, the regional bank fund lost about 16%, its worst week since March 2020 as the pandemic hit. Regional bank stocks tumbled in the wake of Silicon Valley Bank's demise, with the SPDR S&P Regional Banking ETF lost nearly 4.4%. Regulators took control of Silicon Valley Bank on Friday, after shares tumbled Thursday and the bank struggled on Friday to find another company to buy it. The S&P dropped 4.55%, while the Nasdaq lost 4.71%. The Dow fell 4.44% to post its worst weekly performance since June. The Nasdaq Composite shed 1.76% to end at 11,138.89.Īll the major averages capped off the week with losses. The Dow Jones Industrial Average dropped for a fourth consecutive day, finishing 345.22 points lower, or 1.07%, to close at 31,909.64. Stocks tumbled Friday as tech-focused lender Silicon Valley Bank shut down following losses in its bond portfolio, prompting the biggest bank failure since the global financial crisis and sending shockwaves through the banking sector. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower It does not store any personal data.Best Debt Consolidation Loans for Bad Credit The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. ![]() The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". ![]() The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. ![]() Necessary cookies are absolutely essential for the website to function properly.
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