SVB Blowout Is Wake-Up Call for Stock Bulls on Banking Risks
- Issues at SVB ‘a cold shower’ on disinflation bets: Athey
- Banks caught off-guard by Fed’s rapid rate hikes: Monchau
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Stock market investors just got a harsh reminder about the risks posed by banking industry turmoil.
US stocks are heading for the worst week of the year after a selloff sparked by liquidity concerns in the banking sector, as portfolio losses prompted hasty fundraising by SVB Financial Group, a major lender to fledgling companies. The jitters are spreading across the Atlantic, with European banks tumbling the most since September and the region’s benchmark index sliding sharply.