Stock Market Today: Silicon Valley Bank Failure Sinks Stocks
The largest bank failure since the 2008 financial crisis stole the spotlight from the February jobs report.


Stocks spent the early part of Friday morning chopping between positive and negative territory as investors dissected the February jobs report. However, chaos erupted on Wall Street after regulators shut down Silicon Valley Bank, a regional financial firm that services many of the largest tech companies. What resulted were big losses for the major indexes and substantial slides for a number of bank stocks.
Wall Street had been waiting for the February jobs report with bated breath. It was just earlier this week that Federal Reserve Chair Jerome Powell warned the central bank is prepared to issue more rate hikes if economic data continues to come in strong. Data released earlier underscored a resilient labor market, with the U.S. adding a much higher-than-expected 311,000 new jobs last month. However, the report wasn't all that bad, with the unemployment rate edging up to 3.6% from 3.4% in January, and the pace of wage growth slowing – good news on the inflation front.
"From an equity market standpoint, the jobs report was mixed but on balance probably better than feared. The headline jobs number was strong but importantly hourly earnings were contained," says Matt Peron, director of research at Janus Henderson Investors, adding that this should provide some relief that "extremely high rates might not come to pass." Still, the analyst remains cautious, "as the impact of rates is just starting to appear in the broader economy and inflation is still too high for the Fed's comfort level."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The day's mood quickly shifted on news that Silicon Valley Bank had collapsed, marking the largest bank failure since the 2008 financial crisis. Shares of SVB Financial Group (SIVB) – which owns Silicon Valley Bank – slumped more than 60% Thursday amid serious debt concerns, and were halted earlier today.
"The story began when insiders were advising clients to pull their money out, and as is often the case when financial institutions start to falter, people shot first and asked questions later," says Louis Navellier, chairman and founder of Navellier & Associates. "Why should this matter? Because fears are high that problems there may spread to other regional banks."
Indeed, bank stocks were some of the biggest losers on Wall Street today. Among those notching notable losses were Silvergate Capital (SI, -10.6%), Signature Bank (SBNY, -22.9%) and First Republic (FRC, -14.8%).
As for the major indexes, the Dow Jones Industrial Average fell 1.1% to 31,909, the S&P 500 slumped 1.5% to 3,861, and the Nasdaq Composite shed 1.8% to 11,138.
Biden's budget and investors
We focus on investing in this space, but sometimes it's just as important to be mindful of other financial topics, like taxes. Take President Joe Biden's budget for the upcoming fiscal year, which the White House says will reduce the deficit by roughly $3 trillion over 10 years. Among the proposals is a near-doubling of the capital gains tax rate. Additionally, the president's budget includes a "wealth tax" on the country's richest people.
"If Biden's tax plan were enacted, there would be noticeable investor implications," says Pratik Patel, managing director and head of family wealth strategies, BMO Family Office. However, Patel reminds investors that "Biden's budget and tax plan is a wish list, especially with a divided Congress. It's important for investors to take a wait and see approach before making any drastic investment decisions driven by fears of higher taxes in the future."
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market Today
Wednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts Say
The August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market Today
Apple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market Today
The August jobs report came in much weaker than expected, while the unemployment rate ticked higher.