- Major U.S. equities indexes gave up early gains and ended mixed on March 13, 2023, following the failure of Silicon Valley Bank and Signature Bank.
- The Dow and the S&P 500 closed Monday's session with minor losses, while the Nasdaq held on to a slight gain for the day.
- Regional bank stocks posted another day of sharp declines, with First Republic (FRC) falling 62% and other members of the group tumbling more than 25%.
U.S. equities gave up early gains and ended mixed following government intervention to shore up the banking sector after the failure of Silicon Valley Bank and Signature Bank. The stock market had been up most of the session as troubles in the financial sector boosted speculation that the Federal Reserve may hold off on raising interest rates to fight inflation. However, the Dow and S&P 500 were in the red by the close of trading, while the Nasdaq added 0.5%. Bond and gold prices shot up in a "flight to quality" by investors seeking safe haven assets.
It was another big day of losses for regional banks, which dominated the list of worst-performing stocks in the S&P 500. First Republic Bank (FRC) shares plunged again, down 62% despite moves to reassure investors that it was adequately financed. Shares of Comerica (CMA), KeyCorp (KEY), and Zions Bancorporation (ZION) tumbled more than 25%. Large bank stocks stumbled as well, with Citigroup (C) and Wells Fargo (WFC) shares slipping 7%. Shares of Charles Schwab (SCHW) lost ground even as the discount brokerage moved to distance itself from the banking problems.
The yield on the 10-year Treasury note sank to its lowest level in more than a month, and that lifted stocks that become more attractive when borrowing costs go down. Tech stocks advanced, led higher by shares of all the FAAMG companies. Tesla (TSLA) and Salesforce (CRM) shares climbed. Shares of D.R. Horton (DHI) and rival home builders rose. Surging gold futures pushed up shares of Newmont Corporation (NEM) and other miners.
Consumer staples stocks, such as Procter & Gamble (PG) and Campbell Soup (CPB), moved up. Illumina (ILMN) shares jumped following a report that activist investor Carl Icahn is preparing to wage a proxy fight at the biotech company. Another biotech firm, Seagen (SEGN), saw its shares soar after Pfizer (PFE) agreed to buy it for $43 billion.
Oil prices sank. The U.S. dollar fell versus the euro, pound, and yen. It was a big day for cryptocurrency bulls, as optimism over the federal assistance for banks sent digital coin prices skyrocketing.