As traders examined a plan to support all the depositors in the bankrupt Silicon Valley Bank and provide extra funds available for other banks, the Dow Jones Industrial Average increased.
The Nasdaq Composite increased by 0.1%, although the 30-stock index increased by 135 points or 0.4%. S&P 500 prices fell 0.1%.
After a highly chaotic session, all 3 indicators have traded in and out of their flatlines. The volatility index on the Chicago Board Options Exchange reached levels not witnessed since late 2022 and was getting close to being in a highly dangerous zone.
Following their decline the previous week, bank stocks are still under pressure, with JPMorgan Chase and Citigroup down. Regional banks dropped even more, with First Republic seeing the largest decline of 65%.
In a letter to investors, Barclays analyst Ajay Rajadhyaksha stated, “Financial markets suffer a no-win position, stuck between concerns of regional bank runs and central banks fearful regarding sticky inflation.
Several sectors of the market, such as some defensive names like Johnson & Johnson and Eli Lilly as well as other technology stocks like Apple, were able to grow at the same time.
Following a joint announcement from the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation, most Silicon Valley Bank depositors can access their funds beginning on Monday.
