CNBC Daily Open: Banks got hammered by SVB's collapse. But the Fed might still raise rates
Publishing timestamp: 2023-03-14 02:22:13
Summary
Bank stocks continue to suffer after the collapse of Silicon Valley Bank, with many China-based startups also affected. The Federal Reserve's additional funding did not prevent the rout, and President Biden stated that investors in banks would not be protected. The contagion has spread to Asia-Pacific markets, with the Nikkei 225 and Kospi both dropping. Investors are seeking safer assets, causing a drop in yields. The collapse of SVB is attributed to its unique spread of assets. Despite the turmoil, the pharmaceutical industry saw gains after Pfizer's acquisition of Seagen. The Fed is still expected to go through with rate hikes, with the consumer price index reading being a better indicator of rates' trajectory.
Sentiment: NEGATIVE
Tickers: C, LLY, MRNA, SBNY, GS, KEY, WAL, SGEN, BAC, JNJ, FRC, SCHW, PFE, SIVB,
Keywords: bank of america corp, business news, first republic bank, economic events, western alliance bancorp, federal reserve bank, interest rates, citigroup inc, united states, charles schwab corp, banks, eli lilly and co, johnson & johnson, pfizer inc, svb financial group, pharmaceuticals, keycorp, seagen inc, central banking, joe biden, goldman sachs group inc, moderna inc, signature bank, world markets, markets,