- US stocks traded mixed on Monday as markets assessed the latest banking sector news.
- Reports over the weekend of further government support for banks sent shares higher on Monday.
- A Senate hearing on the collapse of Silicon Valley Bank is slated for this week.
US stocks were mixed on Monday as markets assessed the the sale of Silicon Valley Bank’s assets to First Citizens Bank and digested reports of potentially more aid for banks from the government.
Major indexes were mostly higher throughout the day on Monday, with the Nasdaq giving up gains to end in the red.
First Citizens will acquire $72 billion of Silicon Valley Bank’s assets for a $16.5 billion discount. The news spurred a rebound in regional bank stocks, which have been under pressure since SVB imploded earlier this month.
Also helping bank shares was a report from Bloomberg over the weekend that more government support could be offered to banks in part to help First Republic further stabilize. Shares of the California-based lender climbed 27% in early morning trading to end the day 12% higher. PacWest rose as much as 10% in the early morning, ending about 3% higher.
The Senate Banking Committee us set to hold a hearing on the recent banking sector turmoil on Tuesday. Eyes are also on key economic data releases this week, with investors expecting the Conference Board’s Consumer Confidence report to roll out on Wednesday, and the Personal Consumption Expenditures index–the Fed’s preferred inflation measure—to come out on Friday.
Here’s where US indexes stood shortly after the close at 4:00 p.m. on Monday:
Here’s what happened today:
In commodities, bonds and crypto:
- The yield on the 10-year Treasury surged 16 basis points to 3.54%.
- Bitcoin fell 2.68% to $27,079.33.
This content was originally published here.
