Dow falls for a fifth day despite emergency backstop of Silicon Valley Bank: Live updates

Pro Picks: Watch all of Monday's big stock calls on CNBC
Pro Picks: Watch all of Monday's big stock calls on CNBC

The Dow Jones Industrial Average dropped on Monday as a plan to backstop all the depositors in failed Silicon Valley Bank, along with other extraordinary measures, failed to boost bank shares.

The losses were contained as some investors bet the financial shock could cause the Federal Reserve to pause interest rate hikes.

The Dow Jones Industrial Average lost 90.50 points, or 0.28%, to close at 31,819.14. The 30-stock index, which posted its fifth straight day of declines with Monday's session, was able to pare losses after dropping more than 284 points earlier in the session.

The S&P 500 ended down 0.15%, to end at 3,855.76 after falling as much as 1.37% at one point. The Nasdaq Composite closed 0.45% higher at 11,188.84 points.

The Cboe Volatility index (VIX), Wall Street's preferred fear gauge, reached a level not seen since late 2022 and neared territory considered highly risky, up nearly 2 points at 26.52. Meanwhile, Treasury yields tumbled Monday, helping to lend some support to equities.

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S&P 500 Monday

A joint statement from the Fed, Treasury Department and the Federal Deposit Insurance Corporation said all Silicon Valley Bank depositors would have access to their money starting Monday. The Fed also said it is creating a new Bank Term Funding Program aimed at safeguarding deposits. The facility will offer loans of up to one year to banks, saving associations, credit unions and other institutions.

Bank stocks remained under pressure following last week's slide, with JPMorgan Chase and Citigroup falling. Regional banks fell even more, led by a drop of more than 61% in First Republic.

But investors bought up other areas of the market outside of banks, such as some technology stocks like Apple and defensive names including Johnson & Johnson and Eli Lilly.

Traders are pricing in about 2-to-1 odds that the Fed raises its benchmark borrowing rate by 0.25 percentage point at the March 21-22 meeting. But the market also is anticipating that by the end of the year, the central bank will lop off 0.75 percentage point in cuts, taking the rate down to a target range of 4%-4.25%. Current pricing indicates a terminal rate of 4.75% by May.

Goldman Sachs has gone even further, saying it no longer expects the Federal Reserve to hike rates at its meeting next week.

"This news really is really a deflationary shock that the Fed has to consider," said Gina Bolvin, president of Bolvin Wealth Management Group. "It's definitely a game changer."

February's consumer price index, the next data point to be released that can provide insight into the path of inflation, is slated to come out before the market opens Tuesday.

Lea la cobertura del mercado de hoy en español aquí.

Dow and S&P 500 close lower

Stocks were mixed at closing bell.

The Dow ended down about 0.3%, while the S&P 500 closed 0.2% lower. But the Nasdaq Composite was able to avoid losses and end around 0.5% higher.

— Alex Harring

Fed's Barr to lead review into regulation of SVB

The Federal Reserve's top regulator will be leading a review into the events leading to the implosion of Silicon Valley Bank, the central bank announced Monday.

Vice Chair for Supervision Michael S. Barr has been tapped for the probe, the results of which will be released to the public May 1. The review will focus on the review and supervision of SVB, which the Fed oversees in its role as a regulator.

"The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," Chairman Jerome Powell said.

—Jeff Cox

Gundlach says Fed will hike rates to save credibility

DoubleLine Capital CEO Jeffrey Gundlach believes that the Federal Reserve will still pull the trigger on a small rate hike next week despite the ongoing chaos in the banking sector that prompted extraordinary rescue action from regulators.

"I just think that, at this point, the Fed is not going to go 50. I would say 25," Gundlach said on CNBC's "Closing Bell" Monday. To save the central bank's "credibility, they'll probably raise rates 25 basis points. I would think that that would be the last increase."

— Yun Li

Flurry of insiders buy shares in dropping PacWest Bancorp last week

A group of insiders bought shares of PacWest Bancorp on Thursday as the bank stock cratered in the wake of the Silicon Valley Bank collapse.

As of Thursday, PacWest Bancorp CEO Paul W. Taylor bought up roughly $506,200 of his own company's stock, according to VerityData. He added about 22,800 shares, priced at $22.20 per share.

William J. Black, executive vice president of strategy and corporate development at the firm added about $267,400 worth of PacWest shares, or about 13,000 shares for $20.57 each.

Director Stephanie B. Mudick snapped up $67,300 worth of PacWest stock, for $20.70 per share. Meanwhile, directors William C. Hosler and Paul Robert Burke added about $41,300 and $44,500 worth of company stock, respectively.

In total, the five leaders bought roughly $926,700 worth of company stock on Thursday.

On Monday, PacWest shares tumbled roughly 20%, last trading at about $10 per share.

— Sarah Min

Bank failures signal tech slowdown and market drag, Commonwealth CIO says

The recent bank failures — albeit some of the largest in U.S. history — are not the start of the next financial crisis, said Brad McMillan, chief investment officer and a managing principal at Commonwealth Financial Network. But they might suggest an end to the technology boom. 

"Unlike in 2008, the government is getting ahead of the problem rather than trying to clean up afterward. That is a very positive sign," McMillan wrote in a note to clients on Monday. Still, he said the banking crises pose two risks for the market: an increased likelihood of a near-term recession and a tech sector slowdown.

While the tech startup-focused Silicon Valley Bank felt the effects of rising interest rates more intensely, McMillan expects to see banks and the broader financial sector pull back on lending and risk, which will slow economic growth and likely drag down markets. He also sees an added risk to the tech sector, noting that banks looking to replace SVB will likely not be as focused on the tech sector. 

"One of the primary enablers of the tech boom is now gone," McMillan wrote in the note.

And while he said the situation is worth monitoring, it's not the start of the next financial crisis. He said investors should currently see the situation as a sign that the government takes the closures seriously and can help the U.S. banking system if needed.

"Unlike in 2008, the government has stepped in early and stepped in hard," he said. "We are not set for a rerun of the Great Financial Crisis. This is not the end of the world."

— Pia Singh

Credit Suisse downgrades Logitech shares

Credit Suisse moved to the sidelines on Logitech, downgrading shares to neutral from outperform.

"Given that there is little prospect of growth in the next six months in a challenging interest rate environment, we do not see any short-term catalysts, and we believe the holiday season (Q3) could become the first event to change the outlook," analyst Serge Rotzer wrote in a client note Monday. 

Rotzer noted that Logitech's margins may improve due to easing cost pressures, components supply and shipping congestion, as well as the reopening of China. "However, this is not enough to drive the share price, in our view, as we need to see sales growth to justify higher multiples," said the analyst. 

CNBC Pro subscribers can read more about his downgrade here.

—Hakyung Kim

Rivian Automotive stock drops to all-time low

Rivian Automotive hit an all-time low during Monday's trading session, dropping below $13.20 per share, after a Rivian spokeswoman said the company is in talks with Amazon to adjust their exclusivity agreement for the EV maker's electric delivery trucks. 

The stock is down more than 2.7% in Monday's session. 

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Shares are down more than 28% so far this month.

Rivian and Amazon entered into an agreement in 2019 to produce 100,000 electric trucks for the online retailer, but Amazon's order of 10,000 trucks for 2023 came in at the "low end of a previously provided range," The Wall Street Journal first reported on Monday. 

Eliminating the exclusivity clause of their agreement would allow Rivian to attract new customers as it ramps up production of Amazon vans and its R1 series pickup and SUV, as well as a forthcoming R2 model, CNBC reported earlier today. 

— Pia Singh

Market implies some are fearful a recession could be coming, Deutsche Bank strategist says

Monday's market infers that some are fearing a domestic recession is about to start, Deutsche Bank research strategist George Saravelos wrote in a note to clients on Monday. 

"We are now pricing in Fed cuts rather than hikes, the yield curve is bull steepening sharply, commodities and equities are down with cyclicals underperforming," Saravelos wrote. "This is all consistent with an imminent US recession."

Without certifying that this will happen, Saravelos noted three observations on current market conditions:

  1. With the latest banking crisis, Saravelos wrote that competition for deposits is likely going to intensify in the U.S. banking system moving forward, leading to further tightening in the economy. 
  2. The dollar is "behaving extremely unusually" despite a recession being priced in, according to Saravelos. The greenback is down against the vast majority of G10 and emerging markets, or EM, currencies.
  3. If the dollar stops serving as an investment hedge to underlying risky U.S. asset positions, Saravelos said there will be added pressure on the dollar and on portfolio managers' asset allocation. Most asset managers over the last decade have constructed portfolios based on a negative correlation between risk appetite and the dollar.

— Pia Singh

Fed likely to keep hiking despite financial system fractures

A popular adage in the market is that once it starts, the Federal Reserve will keep raising interest rates until something breaks. But even with the recent turmoil in the banking industry, markets largely expect the Fed to keep hiking.

"Is this enough to qualify as the kind of break that would have the Fed pivot? The market overall doesn't think so," Quincy Krosby, chief global strategist at LPL Financial, said of the recent collapses of Silicon Valley Bank and Signature Bank.

Markets in fact were pricing in about a 75% chance of a quarter percentage point increase when the Fed meets next week, according to CME Group data.

Goldman Sachs was an outlier in predicting that policymakers would take a brief pause then resume hiking once conditions get more stable. Economists at both Citigroup and Bank of America said they expect more increases.

Holding off a rate hike "would invite markets and the public to assume that the Fed's inflation fighting resolve is only in place up to the point when there is any bumpiness in financial markets or the real economy," Citigroup economist Andrew Hollenhorst said in a client note.

—Jeff Cox

Markets are 'compartmentalizing the financial carnage,' says Vital Knowledge

Adam Crisafulli of Vital Knowledge noted that the broader market is keeping the declines in regional banks contained to that sector.

"The vertiginous collapse in financial stocks is breathtaking, but equally impressive is the broader market's ability to compartmentalize the financial carnage," Crisafulli wrote Monday.

"The lack of contagion comes down to three main factors: 1) the post-Lehman changes ... act as a circuit breaker, preventing trouble at one institution from inflecting the whole industry; 2) the Sunday night actions taken by the Fed, FDIC, and Treasury provided reassurances to regional bank depositors (although not regional bank shareholders); and 3) the plunge in yields provides a huge tailwind for equity valuations," he said.

— Fred Imbert

Stocks are up as investors enter final hour of trading

The three indexes were up as investors entered the final hour of the trading day.

The Dow was up 0.4%, while the S&P 500 and Nasdaq Composite each added 0.6% and 1.2%, respectively.

Despite each trading down earlier in the session, the indexes advanced investors bet that the fallout around Silicon Valley Bank and Signature Bank could push the Federal Reserve to change course on interest rate hikes.

— Alex Harring

Citi upgrades PNC shares to buy

Analyst Keith Horowitz upgraded PNC shares to buy from hold. He reiterated his price target of $175, implying more than 27% upside from Friday's close price.

"PNC is a high quality franchise with a strong management team and given the recent pullback we view this as an attractive entry point," Horowitz wrote in a note on Monday. 

The analyst added that the regional bank "has a number of positives including larger benefit than most peers on fixed asset repricing tailwinds, screens well on our fair value analysis, clean asset quality, and strong deposit base."

CNBC Pro subscribers can read more about his upgrade here.

— Hakyung Kim

Utilities leads S&P 500 in best day since November

Utilities stocks are among those performing best within the S&P 500 and are on track for their best day since November.

The sector was last up 2.2%, which is the best day for the stocks since Nov. 30. WEC Energy Group performed the best within the sector with a 4.3% gain, followed by Xcel Energy at a 3.7% advance.

It's one of seven of the broad index's 11 sectors that's on pace to see gains for Monday's session. Real estate followed as the second-best performer so far, up 2%.

Financials continued to drag, down 2.5%. Energy was next worst-performing sector at 1.1% in the red.

— Alex Harring, Fred Imbert

Two banking ETFs slump to lowest levels since 2020

A pair of banking exchange-traded funds each slid to their lowest levels since Nov. 6, 2020 as shares of regional banks dropped amid deposit flight fears.

The SPDR S&P Regional Bank ETF (KRE) shed more than 9% midday Monday, while the SPDR S&P Bank ETF (KBE) dropped more than 7%.

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Two bank ETFs slump to lowest levels since 2020

Notable losers include First Republic Bank, which tanked more than 62%, despite the institution having received additional liquidity from the Federal Reserve and JPMorgan Chase on Sunday. Western Alliance shares also plummeted 55%; the bank said in a regulatory filing that it had taken "additional steps" to strengthen its liquidity position. PacWest shares were down more than 30%. Trading in many bank stocks was halted repeatedly for volatility throughout the day.

Darla Mercado, Gina Francolla

Davidson upgrades Prosperity Bancshares, says it has 'fortress-like balance sheet'

Davidson upgraded Prosperity Bancshares to buy from neutral on Monday, naming the Houston-based bank holding company a defensive play with a "fortress-like balance sheet." 

In a note to clients on Monday, analyst Peter J. Winter noted that Prosperity is trading at its 52-week low after the failures of Silicon Valley Bank and Signature Bank, which the firm believes has no bearing on Prosperity Bancshares. 

"Given the increased risks of a deeper recession, PB is a great defensive stock given its low risk balance sheet, strong deposit franchise, and peer leading capital ratios," Winter wrote. He added that the company maintains a high level of fixed rate assets that will reprice at much higher rates over the next 12 to 24 months. 

The firm left its price target per share of $79 unchanged, suggesting the stock stands to gain more than 23% from Friday's closing price. Prosperity's stock price is down more than 2% in Monday's session, marking low not seen since 2020.

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Prosperity shares

– Pia Singh

Some regional bank stocks buck sector downtrend

Not every regional bank stock is taking the heat from the fallout of Silicon Valley Bank's collapse.

A handful of regional bank stocks bucked the broader sector's downtrend on Monday. That included shares of United Bankshares and Washington Federal, last up 5.2% and 3.8%, respectively. Valley National Bancorp shares gained 3.6%.

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United Bankshares rise

— Samantha Subin

Citi upgrades Charles Schwab

The recent pullback in Charles Schwab shares presents a compelling entry point for investors, according to Citi. 

Analyst Christopher Allen upgraded Schwab shares to buy from neutral, saying that Schwab shares have limited risk of deposit flight risk. 

"We see current valuation levels as a compelling entry point given SCHW's long-term track record of delivering healthy asset/revenue growth and opportunities for margin expansion in 2024/2025 given current investment levels," Allen wrote in a Monday note.

CNBC Pro subscribers can read more about his downgrade here.

— Hakyung Kim

Watch value stocks for signals about market fears, strategist says

As markets bounce between gains and losses on Monday, the relative performance of value stocks could be key for determining what investors think is coming next, according to Lauren Goodwin, economist and portfolio strategist at New York Life Investments.

"I'm interested in not only the direction but the tenor of equity market moves," Goodwin said.

"For example, if we have a strong down day, is that reinforced in growth equity more than value, which would suggest that the market is more concerned about these long duration plays in the technology sector. Or do we see actually value have a harder day, which would suggest that the market is deeply concerned about recession."

The pattern would need to play out beyond Monday to show a true trend for the market, Goodwin added.

The Vanguard Value ETF (VTV) was down less than 0.5% in afternoon trading.

— Jesse Pound

Stocks making the biggest midday moves

Financial names were among the biggest stocks making the biggest midday moves.

Here's a few of them:

  • Shares of regional banks plummeted following the collapse of Silicon Valley Bank and Signature Bank. First Republic sank 64%, and Western Alliance dropped about 57%. PacWest shed 26%. KeyCorp fell nearly 30%, and Zions lost about 24%.
  • Shares of major banks also saw losses after the closure of the Silicon Valley Bank and Signature Bank. Citi dropped 6%. Bank of America followed at 3% down, while Goldman Sachs lost about 2%.
  • Charles Schwab — The stock sank 10% as part of the broader rout in the banking sector. However, Schwab reassured shareholders and customers that it isn't seeing any significant outflows and that 80% of its total deposits fall within the FDIC insurance limits. Citi also upgraded the stock to buy from neutral, saying the stock's recent decline gives it a "compelling" risk-reward ratio.

See the full list here.

— Michelle Fox

Bank stock sell-off is overdone, but can't rule out other banks facing similar concerns, UBS' Solita Marcelli says

"While some of the selling in certain banks seems overdone, it's hard to know when the 'crisis of confidence' will improve," said Solita Marcelli, chief investment officer at UBS Global Wealth Management.

At midday, the SPDR S&P Regional Banking ETF was down more than 8%, hitting its lowest level since Nov. 6, 2020. Shares of First Republic were leading the decline. The stock is trading at all-time lows dating back to its December 2010 initial public offering.

Other laggards include Western Alliance, UMB, First Horizon and PacWest, among others.

For investors looking to take advantage of the sell-off, Marcelli recommends a focus on some the largest U.S. bank stocks.

"... Maintaining depositor and investor confidence is crucial for a financial institution, and we cannot completely rule out the possibility that other banks could face similar concerns, despite what appear to be very sound balance sheets across the industry," she said.

—Christina Cheddar Berk

Western Alliance says it is having 'moderate' deposit outflow

Western Alliance President and CEO Kenneth Vecchione said in a statement Monday that the bank is seeing "moderate" deposit outflows in light of the SVB-fueled panic. 

"As of this morning, cash reserves exceed $25 billion and are growing, while deposit outflows have been moderate. Including accounts eligible for pass-through insurance, insured deposits exceed 50% of total deposits," said Vecchione. 

The CEO also said that "Western Alliance has taken additional steps to strengthen its liquidity position to ensure that we are in a position to meet all of our client funding needs, including increasing our borrowing capacity."

Western Alliance's stock is currently halted for trading, after plunging almost 58% on Monday morning.

— Hakyung Kim

Wolfe Research downgrades Tesla due to SVB-related fallout risk

Macroeconomic concerns around Tesla are starting to mount, according to Wolfe Research.

Analyst Rod Lache downgraded Tesla shares to peer perform from outperform. Lache maintained his price target of $185, implying 6% upside from Friday's close price. 

"Tesla has already had to cut prices quite a bit more than we expected. And we worry that macro challenges are intensifying in ways that could disproportionately affect US EV makers," Lache wrote in a Monday note.

Tesla has cut prices in recent months to stoke sales, raising concern among some analysts that profits could be under pressure going forward. Now, the company could be hurt by the Silicon Valley Bank failure, Lache said.

CNBC Pro subscribers can read more about his downgrade here.

— Hakyung Kim

Sunday's event show the U.S. banking system has been nationalized, former Nasdaq CEO says

One thing was made clear by the federal government's move to backstop Silicon Valley Bank depositors: "The banking model was nationalized," said Bob Greifeld, former Nasdaq CEO.

"I think the federal government had three options in front of them. One is to find a buyer. … Second was to let the market play out. I personally have three companies that are in financial technology that have all their banking with SVB," said the chairman of Virtu Financial in a CNBC "Squawk on the Street" interview. "Option third was to take the easy option and backstop everything."

"In the moment, that feels very good," Greifeld added. "Over a longer period of time, we have to recognize that we have nationalized banks. The genie is out of the bottle, and anytime a bank runs into trouble … the expectation is the feds will backstop that. And that has long-term implications."

— Fred Imbert

UBS calls some of recent pullback in bank stocks 'overdone'

Some of the recent pullback in bank stocks appears overdone as investors adopt a "sell first and ask questions later" mentality, according to UBS.

"Nevertheless, while we remain cautious on US financials with a least preferred view, we believe some of the recent sell-off in banks has been overdone — especially in select universal banks, which remain well capitalized and sufficiently liquid to continue to serve clients," the bank said Monday.

Going forward, UBS views systematic risks as "unlikely," viewing the situation at Silicon Valley Bank as "unique" given its focus on venture capital-backed startups.

"While some of the selling in certain banks seems overdone, it's hard to know when the 'crisis of confidence' will improve," the bank said. "For those investors that do want to take advantage of the sell-off, we recommend focusing on some of the largest US banks."

— Samantha Subin

Financial stocks stay down in morning trading

Financial stocks continued to fall in Monday's session after last week's selloff.

Bank bank stocks remained under pressure as investors remained skittish on the sector amid the fallout around Silicon Valley Bank and Signature Bank. Citigroup fell 4.7%.

Regional banks fell even more, led by a 70% drop in First Republic. Western Alliance followed in First Republic's tracks, plummeting nearly 58%.

Charles Schwab lost 8% and at one point dropped as much as 23.3%.

Financials was the worst performing of the S&P 500's 11 sectors as of late morning on Monday, down 2.4%. By comparison, the next worst performer was energy, with 1% lost.

Seven of the 11 sectors in the broad index were trading positively.

— Alex Harring

Consumer outlook for inflation plunged in February

Near-term inflation expectations plunged in February, possibly giving some relief to the Federal Reserve, according to a survey released Monday.

The New York Fed's monthly Survey of Consumer Expectations showed that respondents figure the inflation rate to be at 4.2% a year from now. That's a 0.8 percentage point slide from a month ago.

Within that number, consumer see food prices rising 7.3%, which is a 1.7 percentage point drop from February. Gas prices are seen rising 4.7%, which is a 0.4 percentage point decline.

Median household spending growth expectations, however, declined only slightly to 5.6%, down 0.1 percentage point.

Inflation expectations further out were little changed, with the three-year outlook at 2.7% and the five-yeare outlook at 2.6%.

—Jeff Cox

Banking crisis isn't over yet. Asset valuation is key, say Shard Capital's Bill Blain

"This crisis is not yet over. On Friday last week I wrote the crux of this crisis is valuations – what things are actually worth," Bill Blain, strategist at Shard Capital in London wrote to clients in his daily Morning Porridge note on Monday.

The Silicon Valley Bank "debacle highlights failure and further crisis to come," Blain noted. "Hard Hats Stay On!"

The coordinated action of the U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corp. Sunday night showed that "failing banks will be allowed to fail – and shareholders and lenders (as opposed to depositors) will be wiped or suffer losses."

But "It isn't over yet," Blain said, citing the age old stock market adage that "there's never only one cockroach." 

Looking ahead, the immediate issue is that, "private equity and private debt managers are going to struggle to demonstrate the veracity of their current valuations, meaning they will struggle with margin calls and raising new cash, creating a vicious negative feedback loop on these markets," Blain wrote.

"If valuations across markets under pressure are wrong, what makes the market believe current liquid market stocks are right? They are just as susceptible to over-optimism and inflation!"

— Scott Schnipper

Wells Fargo upgrades JPMorgan Chase to overweight

Wells Fargo is getting bullish on JPMorgan.

Analyst Mike Mayo upgraded JPMorgan to overweight from equal weight. Mayo also raised his price target to $155 from $148, which implies 16% upside from Friday's close price. 

"JPM epitomizes our theme of 'Goliath is Winning,'" Mayo wrote in a client note on Monday. "[It] has excelled at both offense and defense over the past decade in which it has been gaining market share in all major business lines while optimizing its businesses, showing consistent earnings relative to other global banks, and creating a 'fortress balance sheet' (as defined by its CEO)."

CNBC Pro subscribers can read more about his upgrade here.

— Hakyung Kim

Defensive names, some tech stocks outperform on Monday

Some technology and defensive stocks outperformed the broader market on Monday.

That included shares of Apple, Microsoft and Alphabet, last up about 1% each. Defensive stocks like Procter & Gamble, Coca-Cola and PepsiCo also gained about 2% each.

In other news, pharmaceutical stocks rose amid news that Pfizer's acquiring Seagen in a deal worth about $43 billion. Seagen's stock jumped about 15%, while Pfizer gained about 1.5%. Moderna, Johnson & Johnson and Eli Lilly rose 2.2%, 3.7% and 3.4%, respectively.

— Samantha Subin

Medical device company Insulet to be added to S&P 500, replacing SVB Bank

SVB Bank will be removed from the S&P 500 after the close on Tuesday and will be replaced by medical device manufacturer Insulet Corp.

Insulet shares were up more than 5% in trading shortly after the market opened. The stock has gained more than 31% over the past year, but had been trending downward since the start of 2023. The stock has an average rating of overweight and a price target of $338.40, according to FactSet.

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Insulet shares are down nearly 5% since the start of the year.

—Christina Cheddar Berk

Stocks open lower as market continues responding to latest bank developments

The three major indexes were lower as Monday's session kicked off, continuing to show impacts from the fallout around Silicon Valley Bank and Signature Bank.

The Dow was down 0.4% shortly after the market opened. Meanwhile, the S&P 500 and Nasdaq Composite lost 1.2% and 1.1%, respectively.

— Alex Harring

Biden says banking system is safe, calls on Congress to strengthen rules after failures

President Joe Biden said Monday that Americans can be confident that the U.S. banking system is safe after regulators scrambled over the weekend to create a plan to backstop deposits at Silicon Valley Bank and Signature Bank.

"Your deposits will be there when you need them. Small businesses across the country with deposit accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills," he said in brief remarks Monday before the market's open.

Biden stressed that no losses will be borne by the U.S. taxpayers. Also, the management of the banks will be replaced and bank investors will not be protected, he said.

Biden also called on Congress to look for ways to strengthen banking rules to prevent these events from repeating.

—Christina Cheddar Berk

Charles Schwab reassures investors of 'significant liquidity,' says more than 80% of deposits within FDIC limits

Charles Schwab is reassuring its shareholders and customers as turmoil hits the broader banking sector, saying in a Monday release that it isn't seeing significant outflows.

"Client bank sweep cash outflows in February were about $5 billion lower than January and March month-to-date daily average outflows are tracking consistent with February," the bank said. "Importantly, these outflows reflect a continuation of client decisions to reallocate a portion of their cash into higher yielding cash alternatives within Schwab."

Schwab also said that more than 80% of its total bank deposits fall within the insurance limits of the FDIC, reassuring clients that it has "access to significant liquidity" and its business is continuing to "perform exceptionally well."

Schwab shares fell another 7% before the bell, building on its more than 24% loss last week as Silicon Valley Bank's shutdown rattled the broader sector.

"Our financial performance continues to be strong," the bank said. "As we look ahead to our first quarter results, we anticipate year-over-year revenue growth of about 10% relative to Q1 2022, with adjusted1 pre-tax profit margin in the 45-47% range."

— Samantha Subin

Stocks making the biggest moves premarket

Here are the companies making headlines before the bell on Monday:

  • Seagen — Shares soared more than 18% in early market trading on news it will be acquired by Pfizer in a deal worth roughly $43 billion, which will boost Pfizer's cancer treatment portfolio as it endures a decline in Covid-19 product sales. Pfizer offered $229 in cash per share of Seagen, a 32.7% upside to Friday's closing price.
  • Illumina