![]() ![]() "While this level of near-term weakness has generally suggested that selling has become extreme enough to generate an oversold bounce, history ultimately points to renewed weakness in the months ahead," analyst Tony Dwyer said in a Friday note to clients. But that doesn't mean a broad and sustained rally will follow, Canaccord Genuity warned. The KBW Bank Stock Index has fallen nearly 12% over the last three days amid the Silicon Valley Bank shutdown. "The only difference is that we are dealing with a bank that focused on technology rather than on real estate." "If anything, this appears to be a typical bank failure like we saw during the Savings & Loan crisis," Seiberg wrote in the note. Silvergate's shares skyrocketed that year, off of a similar rush into cryptocurrencies and speculative assets.īecause SVB was less dependent on retail deposits compared to a traditional bank, Seiberg said the bank was more exposed to interest rate risk as funding got more expensive, but its assets were not increasing in price. 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 Best Debt Consolidation Loans for Bad Credit
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