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US Stocks Turn Lower on SVB Collapse

The major US indices were trading slightly lower in midday trading on Friday as investors were monitoring the situation around the collapse of Silicon Valley Bank and digested the latest jobs numbers.

On Friday, the Californian bank has been closed by the Federal Deposit Insurance Corporation which has taken control of its deposits.

Earlier, the run on deposits doomed the tech-focused lender’s share sale to shore up its balance sheet amid losses from bond sales.

Meanwhile, employment report showed that US employers hired more workers than expected in February, with nonfarm payrolls increasing by 311,000.

On the other hand, unemployment unexpectedly rose to 3.6% and wage inflation cooled, easing some worries that a still-tight labor market will prompt sharper interest rate hikes.

For the week, the Dow is down 3.6%, on pace for its worst week since September, while the S&P 500 is set to decline 3.5%.

Shaz

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