The Silicon Valley Bank collapsed, and the closure of Signature Bank and Silvergate Bank led to changes in the stock market. These changes in the stock market are to control the effect the banks have on the investors.
- The S&P 500 added 0.6% and traded high after obtaining more than 2%.
- The Nasdaq Composite rose 1% and also cooled down after nearing 2.5% higher at some point.
- The Dow Jones Industrial Average is up by 44 points or 0.1%, in an attempt to snap a five-day losing streak.
- The SPDR S&P Regional Banking ETF (KRE) was up 1.5% after a 12% decline.
- The shares of First Republic Bank have increased by 25% after it went down by nearly 62%.
- KeyCorp shares add 6% after a downfall of 27%.
- Matching the consensus estimate of economists by Dow Jones, the Consumer Price Index (CPI) has risen 0.4%.
Due to the closure of both banks, there has been a huge fall in the Asian market. Japan’s most respected stock, Nikkei, dropped by 2.2%, and the Tokyo Stock exchange bank declined by 7%. Hong Kong shares in HSBC and Standard Chartered have fallen by over 5%. Singapore and Australia shares have dropped drastically.
The Fed has promised to return all money to the depositors and provide short-term loans to lenders struggling to get cash.
European markets fluctuate
Some European stock markets are also affected, while some aren’t. Germany and France’s economies are not at risk of bank failure, while Italy and Switzerland are being influenced. Frankfurt and Paris’s stock markets have declined by 3%, Milan also by 5%, and Zurich has decreased by 1.7%.