Last Friday, the fall of Silicon Valley Bank (SVB) caused a sharp decrease in American bank stock prices.
The prices of banking stocks in the U.S. saw a resurgence on Tuesday, recovering from a steep drop on Monday. This was due to worries about the potential fallout of the failures of Silicon Valley Bank (SVB) and two other American banks.
Monday was a difficult day for banking stocks in the country, with First Republic Bank’s share price dropping the most, by over sixty percent to $28 apiece. Western Alliance Bancorp, KeyCorp, and PacWest Bankcorp also witnessed a significant decrease in their stocks, with 64%, 37%, and 30% dips respectively.
Other banks such as Zions Bancorporation and Charles Schwab endured a 25% and 11% drop, while the stock of Bank of America dropped by a marginal 3% to $29. The downfall of SVB evidently created a gloomy atmosphere in the financial market.
On Tuesday, the markets showed signs of a recovery, with investors returning to the fold after the panic-stricken sell-off the day before. The two banks that experienced the most significant drops in value, First Republic Bank and Western Alliance Bancorp, both saw their stock prices improve notably – the former rising 28% to $40 per share and the latter 14% to $30. This suggests that fears regarding the fallout from SVB may be beginning to abate.
