- Investors hoping for a reprieve from abrupt swings in technology stocks now are facing renewed crosscurrents from the collapse of Silicon Valley Bank.
- The initial optimism was driven by regulators’ assurances that all of the bank’s depositors will be protected.
- Higher borrowing costs are only beginning to make themselves felt in the economy, and a slowdown could further deflate the 2020-2021 bubble in highly valued tech stocks.
- The Nasdaq 100, after plunging by a third last year because of the Fed’s rate hikes, had stabilized, up 8.1% this year through Friday.
- Regulators rushed to control the fallout, with the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. on Sunday jointly announcing efforts aimed at strengthening confidence in the banking system.
No Escape From Wild Stock Swings Amid SVB, Fed Outlook
Investors hoping for a reprieve from abrupt swings in technology stocks now are facing renewed crosscurrents from the collapse of Silicon Valley Bank.
Subrat Patnaik
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