Bank Stocks Sink Most in Nearly Three Years as Sentiment Sours
- ‘Is this the dam that has burst?’ DA Davidson’s Tenner asks
- JPMorgan, Bank of America and Wells Fargo all drop 5% or more
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US bank stocks tumbled by the most in almost three years after a Silicon Valley-based lender took steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets across the financial industry.
The KBW Bank Index sank 7.7%, its biggest drop since June 2020. SVB Financial Group, a firm that specializes in venture-capital financing, was the gauge’s biggest decliner, sinking a record 60% after it announced a stock offering and sold off a chunk of the securities in a portfolio that’s been hit by heavy losses. Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. all slid at least 5%.