Silicon Valley Bank Hammered, Panic Spreads Across Financial World

Stocks fell again on Friday as banking shares came under pressure in the wake of troubles at Silicon Valley Bank, a lender to the tech sector facing big bond losses.

The Dow Jones Industrial Average dropped 170 points, or 0.5%. The S&P 500 dipped 0.8%, and the Nasdaq Composite fell 1.1%.

SVB Financial tumbled again on Friday, dropping another 63% in the premarket  before being halted through the open. The stock has been under massive pressure after the company announced plans to raise more than $2 billion in capital in a bid to offset losses from bond sales. It was in talks to sell itself after attempts to raise capital have failed, CNBC’s David Faber reported, citing sources.

The move weighed on the financial sector and banking stocks, with the SPDR S&P Regional Banking ETF down more than 4%. Some bank stocks were halted during early morning trading, including First Republic, PacWest and crypto-focused Signature Bank. Shares were last down about 38%, 25% and 22%, respectively.