US STOCKS-Futures pare gains as bank stocks drag on SVB contagion fears

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NEW YORK, March 13 — US stock index futures pared early gains today as Silicon Valley Bank’s (SVB) collapse hit the banking sector on contagion fears, while bets that the...

NEW YORK, March 13 — US stock index futures pared early gains today as Silicon Valley Bank’s collapse hit the banking sector on contagion fears, while bets that the Federal Reserve could pause interest rate hikes in March rose.

Trading in shares of SVB’s peer Signature Bank was halted before the bell. First Republic Bank dropped 61.4 per cent in premarket trading, while Western Alliance Bancorp fell 26.0 per cent. “Generally speaking, higher interest rates have been seen as a net win because of higher net interest margins. But this is equally a reminder that they can also be sour loan losses that come with a higher interest rate environment and a slower economic environment.”

The projections of a terminal rate have also receded to just under 5 per cent by July from around 5.5 per cent earlier.

 

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