The value of bank stocks has dropped significantly, causing the Dow to drop by 460 points. The largest banks have lost a combined total of $57 billion.
The Dow Jones Industrial Average has seen a significant drop of 5% in the past two weeks due to increasing worries over the stability of American banks.
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Wall Street analyst Jon Najarian has warned that bank stocks could remain subdued until further evidence of balance sheet strength is presented. He advised investors to remain cautious despite recent rallies, noting that "there are no accountants in a foxhole." Najarian expects the hard data to come in April when earnings season arrives. Until then, he suggests investors remain wary of the volatility of the market.
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American banks have been hit hard this week, with the 10 largest banks alone having lost a staggering $226 billion in market cap since last Wednesday. This marks a significant downturn for the banking sector, as stock prices across all 10 banks have dropped substantially.
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Billionaire investor Bill Ackman is raising the alarm about a $30 billion bank rescue plan, warning that it risks economic contagion spiraling out of control. The plan, announced earlier this week, is intended to buoy banks in the face of the ongoing economic malaise.
Silicon Valley Bank was left reeling today after a failed partnership with Bitcoin. The venture, which promised to revolutionize online banking, had been eagerly anticipated by the tech-savvy community.
In a dramatic turn of events, shares of First Republic stock have crashed, only to be saved by a $30 billion rescue plan from some of the world's biggest banks. The stock's tumble began earlier this week, with the company's share price dropping to a historic low.