Silicon Valley Bank’s (SVB) bankruptcy caused a downturn in the markets. The stock market experienced a sharp decline. The bank was temporarily closed after customers withdrew $42 billion in deposits over two days following the panic caused by the bankruptcy. The appointment of a trustee was announced for the bank. The bankruptcy of the bank was one of the largest bank failures recorded in the United States since the global financial crisis of 2008, and the news had a significant impact on the markets.
Hit the stock markets Following SVB’s bankruptcy, the weekly loss in the S&P 500 index reached 4.5% on the New York Stock Exchange. Yesterday, at the close, the Dow Jones index lost over 340 points, dropping by 1.07% to 31,909.64 points. The S&P 500 index fell by 1.44% to 3,861.73 points, and the Nasdaq index lost 1.76%, dropping to 11,138.89 points.
Gold prices rose due to the news of Silicon Valley Bank’s bankruptcy, which caused concern in the markets. The price of an ounce of gold rose over 2% to $1870 yesterday. The price of a gram of gold, which had fallen to 1102 TL after Powell’s speech on March 7th, rose to 1140 TL.
$42 billion in deposits were withdrawn Panic also prevailed among the bank’s customers… Before the announcement of the bank’s bankruptcy, it was reported that customers withdrew $42 billion in deposits.