Monday marked 52 days since regional bank Silicon Valley Bank announced its bankruptcy, taking with it Signature Bank, another U.S. bank, and, a few days later, Credit Suisse, its victim in the Old Continent. After losing almost all of its market value, First Republic Bank became the third American liquidation and, in spite of this, Wall Street digested well this new bad news, which once again raised doubts about the stability of its banking sector, and even accumulated gains during the day that brought it close to the year’s highs.

Although very slightly, the S&P 500 gained around 0.3% at the close of the European market, a rise that has now brought it to three sessions in positive territory and with which it set new intraday highs of the year at 4,183 points. On the other hand, the Nasdaq 100, despite its lack of banking exposure, fell slightly during the session, weighed down by the fall of Amazon, Tesla and Netflix, among others.

However, the truth is that the US banking sector also managed to contain the storm and, although some of First Republic Bank’s most direct comparables, such as Citiziens or PNC, suffered significant falls, the rest of the banks did not aggravate the situation, the rest of the entities did not aggravate their losses by more than 1% and even some, such as JP Morgan – the firm that is acquiring the assets of the new liquidated bank -, Wells Fargo or Citi recorded gains of more than 1.5%, being among the most bullish stocks on the S&P on Monday, in a session in which the rises were dominated by technology companies.

The news is not expected to affect Spanish and European banks too much, as the ADRs of financial institutions such as Unicredit, Intesa Sanpaolo, Banco Santander and BBVA also traded higher on the US stock market on a day when European markets were closed for Labor Day.

Selling on bonds

This new concern in the US financial system had a particular impact on the bond market. Selling was imposed this Monday on the U.S. 10-year bond, whose yield climbed around 12 basis points and was above 3.5% at the close of this edition.

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