in response to recent industry and regulatory developments. SVB, meanwhile, disclosed large losses in its bond portfolio thanks to factors like rising interest rates.
That fanned fears about the bank's overall health, and reports circulated that firms were telling founders to get their money out of the bank, which lent money to lots of startups, especially in healthcare and tech. Concerns about a run on the bank proved self-fulfilling, and on Friday,Shares of other banks were hammered because investors grew concerned that the factors that felled Silvergate and SVB would turn into a contagion that would harm the entire financial system.
"We are not currently seeing classic signs of contagion, such as stress in the interbank market," said Mark Haefele, chief investment officer for UBS Global Wealth Management. Mark Hackett, the chief of investment research for Nationwide, seconded that assessment. On March 17, S&P Dow Jones will change the makeup of a handful of stock market sectors. The largest changes will involve tech and financials, as companies including Visa, Microsoft, and PayPal will be moved out of the tech classification and into financials.