Impact of SVB Incident... Nasdaq Falls 1.76%

The New York stock market plunged as concerns over bank stocks grew due to the Silicon Valley Bank (SVB) crisis.

On the 10th (Eastern Time), the Dow Jones Industrial Average closed at 31,909.64, down 345.22 points (1.07%) from the previous session at the New York Stock Exchange (NYSE).

The Standard & Poor's (S&P) 500 index fell 56.73 points (1.45%) to 3,861.59, and the Nasdaq index dropped 199.47 points (1.76%) to close at 11,138.89.

Concerns over bank stocks triggered by the SVB crisis influenced the sharp decline in the stock market. Founded in 1983, SVB saw a sudden halt in capital inflows from Silicon Valley startups as U.S. benchmark interest rates rose sharply. Due to a shortage of funds, the bank sold bonds at low prices, incurring significant losses, which was announced the previous day, accelerating deposit withdrawals. Financial authorities intervened and decided to shut down the bank.

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