The failure of Silicon Valley Bank and Signature Bank caused a sharp sell-off in financial stocks with a smaller decline in US stocks overall. But after a brief downturn, US stocks overall nearly regained year-to-date highs, showing confidence in the overall economy to move through this concern about banks.
When an adverse event happens, investors’ response—both positive and negative—can signal a longer-term direction, revealing investor sentiment.
This information is of a general educational nature, not individual investment advice. Investing involves risk of loss. A diversified portfolio does not protect against a loss or guarantee a gain.