- KBW bank index down 11%, 10 banks lost 20%+.
- Fear & speculation that another bank will follow Silicon Valley and Signature into FDIC's arms.
- Critical financials for 5 US banks with worst stock market performance since last Wednesday.
- Futures market expectations for peak fed funds rate fell from 5.3% to 4.8%.
- Risk of stubborn inflation for longer has risen, so risk premium needs to be priced into long yields.
Will another bank fall?
Markets experience a wild day on bank stocks and interest rates. Fear and speculation rise that another bank will follow Silicon Valley and Signature into the arms of the FDIC.