SVB collapse means more stock-market volatility: What investors need to know

It’s all eyes on federal banking regulators as investors sift through the aftermath of last week’s market-rattling collapse of Silicon Valley Bank.

“If a deal gets struck tonight that doesn’t haircut depositors, the market is going to rally strongly,” said Barry Knapp, managing partner and director of research at Ironsides Macroeconomics, in a phone interview Sunday afternoon. “In what is an already jittery market, the emotional response to a failed bank reawakens our collective muscle memory of the GFC,” Art Hogan, chief market strategist at B. Riley Financial Wealth, told MarketWatch in an email, referring to the 2007-2009 financial crisis. “When the dust settles, we will likely find that SVB is not a ‘systematic’ issue.”

Muscle memory, meanwhile, was in effect at the end of last week. Banking stocks dropped sharply Thursday, led by shares of regional institutions, and extended their losses Friday. The selloff in bank stocks pulled down the broader market, leaving the S&P 500 SPX down 4.6%, nearly wiping out the large-cap benchmark’s early 2023 gains.

Analysts and economists largely dismissed the notion that SVB’s woes marked a systemic problem in the banking system.Instead, SVB appears to be a “a rather special case of poor balance-sheet management, holding massive amounts of long-duration bonds funded by short-term liabilities,” said Erik F. Nielsen, group chief economics adviser at UniCredit Bank, in a Sunday note.Implications for the Fed’s monetary policy path also loom large.

Source: News Formal (newsformal.com)

Volatility you say HUMMM☢️↘️↘️↘️↘️⬇️⬇️⬇️☢️

Wait til the dust settles and pick up some good banks! :))

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. bank stocks fall further as regulators shutter SVB FinancialShares of U.S. banks extended recent losses on Friday, with regional banks hit hardest, as SVB Financial Group's failure reverberated across the financial industry. Fasten your seat belts. Are we back in 2008 when 'the mighty have fallen'?
Source: Reuters - 🏆 2. / 97 Read more »

SVB, Silvergate implosion sparks financial system fearsThe implosion of 2 California lenders has investors worried worse is to come: 'There might be some kind of crack in the financial system'
Source: BusinessInsider - 🏆 729. / 51 Read more »

Y Combinator's Garry Tan calls SVB closure an 'extinction level event' for startupsGarry Tan says SVB collapse will set innovation back a decade and that FDIC must make receivership "as short as possible."
Source: MarketWatch - 🏆 3. / 97 Read more »

Startups scramble to meet payroll, pay bills after SVB's swift collapseTech companies that banked at SVB are wondering when they're going to be able to pay employees and their bills after Friday's collapse. Lolol 2008 is calling 🤡 While top executives sold stock before it collapsed any coverage on this andrewrsorkin BeckyQuick badly run bank E-bike taking on risky start ups. Sad media just ignoring this To hear Tim talk about biotech that doesn't make money but started an ETF for pot that he probably shorts is hilarious. Tim nobody takes you seriously little bear...
Source: CNBC - 🏆 12. / 72 Read more »

US Treasury's Yellen expressed confidence in regulators after meeting on SVBU.S. Treasury Secretary Janet Yellen met with banking regulators on Friday to discuss the collapse of SVB Financial Group and expressed 'full confidence' in their abilities to respond to the situation and that the U.S. banking system remains resilient, the Treasury Department said. Ooo we're Aces Now Ms. Yellen’s shaky voice and trembling mannerisms do not foster confidence. 🤣🤣🤣
Source: Reuters - 🏆 2. / 97 Read more »

Startups' payments in limbo amid SVB closureStartups can't access funds in SVB at the moment, and they have payroll and vendor contract payment deadlines looming.
Source: axios - 🏆 302. / 63 Read more »