New York: America’s Silicon Valley Bank (Bank) announced the sale of government bonds (Government Bonds) held by it following huge losses and the share of this bank’s parent company, SVB Financial, fell by 60 percent. The S&P 500 bank index also fell by 6 percent and this is the biggest fall in two years. And with this gaps were created in the stock markets around the world. Asian stock markets, including India, witnessed significant gaps today.
Investors started fleeing financial sector stocks due to the whirlwind in SVB Financial Group, which sent the stock market into a frenzy. Shares of four of America’s largest banks, JPMorgan Chase, Bank of America, Wells Fargo and Citigroup, tumbled 4 to 6 percent, and as a result, the collective market value of these banks was washed away by $2.8 billion today. The US stock market indexes tumbled broadly due to these whirlwinds. In Wall Street, the Dow Jones Industrial Average fell by 43 points, which is 1.66 percent. While the S&P lost 1.8 percent and the Nasdaq Composite was 2.0 percent lower.
In the US stock market, SVB’s share fell as much as 63 percent at one stage and reached its lowest level since August 2016. The impact of the crash in the shares of Silvergate Capital, which lends to the cryptocurrency market, was also seen on the market, whose shares fell by 22 percent. Shares tumbled after the lender announced late on Thursday that it was scaling back operations due to losses stemming from the collapse of crypto exchange FTX.