Traders are seeking refuge in gold after Silicon Valley Bank's shutdown
The failure of tech lender SVB Financial Group (SIVB) and much stronger-than-expected nonfarm payrolls data weighed heavily on Wall Street today. The Dow shed 345 points and logged its worst week since June, while the tech-heavy Nasdaq lost triple digits as well and saw its steepest weekly loss since November. The S&P 500 fell more this week than it has since September, and also settled firmly below breakeven on the day. The Cboe Volatility Index (VIX) roared to life, though, for its best week since January 2022.
Continue reading for more on today's market, including:
- Heavy-hitter stocks that have women in charge.
- Downgrade drew options bears to Caterpillar stock.
- Plus, airline stock brushes off bull note; DOCU's weak forecast; and unpacking the crypto drama.
5 Things to Know Today
- Financial regulators shut down Silicon Valley Bank and took control of its deposits in what is now the biggest U.S. bank failure since the global financial crisis. (CNBC)
- General Motors (GM) announced employee buyouts to salaried U.S. workers that could lead to $1.5 billion in charges, after cutting roughly 500 jobs. (MarketWatch)
- Double upgrade could not help United Airlines stock fly.
- DocuSign stock sank after weak forecast and C-suite shakeup.
- Unpacking the crypto buzz following Silvergate Capital's demise.
Bank Sector Woes Help Gold Nab Weekly Win
Oil prices finished higher on Friday, though they still logged a 3.8% loss for the week. Hopes of a faster reopening of China's economy lifted sentiment and softened the blow of stronger-than-expected jobs data. April-dated crude rose 96 cents, or 1.3%, to close at $76.68 per barrel on the day.
Gold futures edged higher, with the U.S. dollar and Treasury yields weakening after news that the unemployment rate rose in February. The safe-heaven metal also enjoyed investors' concerns over the bank sector after the closing of Silicon Valley Bank. April-dated gold rose $32.60, or 1.8%, to close at $1,867.20 per ounce. For the week, it added 0.7%.