<p>On Monday, retail trades in
securitized derivatives almost doubled against their daily average despite the
uncertainty and concern that trailed financial markets following the collapse
of Silicon Valley Bank (SVB). On Friday, when SVB finally collapsed, retail investors “remained
calm, not reacting strongly to the news,” Spectrum Markets said.</p><p>Spectrum Market in its latest
data on the Spectrum European Retail Investor Index (SERIX), which measures
retail investor sentiments using the trading venue’s pan-European trading
data, noted that retail trade volumes jumped to the highest in the last six
months without impacting overall sentiment. </p><p>“Last week’s average SERIX
sentiment for both the NASDAQ 100 and the S&P 500 increased compared to the
previous week, shifting from 100 to 101 and from 97 to 108 respectively, with
both indexes crossing the 100 threshold to enter the bullish area,” the
securitized derivatives exchange operator explained.</p><p>On Monday, SERIX sentiment maintained its stability as the NASDAQ 100 and S&P 500 indexes declined
only slightly to 92 and 98, respectively. “As such, retail investors do
not seem to believe that we are on the verge of a new Lehman, trusting the
reassurances coming from the US government and the Federal Reserve,” Spectrum
Markets explained.</p><p>US Bank Share Prices Tumble but Later Rebound</p><p>On the contrary, the stock
prices of US banks <a href=”https://www.financemagnates.com/fintech/svbs-collapse-casts-shadow-on-bank-shares-as-first-republic-bank-slumps-over-60/” target=”_blank” rel=”follow”>tumbled on Monday</a>, suggesting heavy sell-offs among investors and
traders. Regional lender, First Republic Bank saw the highest decline with its
share slumping by over 60% to $28 a share during trading hours. Another bank,
Western Alliance Bancorp also saw its shares plunge by 64% to $18 a
share. </p><p>However, things improved the
following day as investors <a href=”https://www.financemagnates.com/fintech/us-bank-stocks-rebound-as-svb-contagion-fears-allay/” target=”_blank” rel=”follow”>began to shake off the fear of contagion from SVB</a>. For instance, First Republic
Bank and Western Alliance Bancorp share prices shot up 28% and 14% to $40
and $30 a share, respectively.</p><p>Last Friday, SVB <a href=”https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/” target=”_blank” rel=”follow”>burst</a> in what has been described as the largest bank failure
in the United States since the 2008 financial crisis. Before that,
crypto-friendly Silvergate Bank <a href=”https://www.financemagnates.com/cryptocurrency/silvergate-bank-announces-voluntary-liquidation-amid-troubles/” target=”_blank” rel=”follow”>wound down its operations</a> and voluntarily liquidated its assets. Furthermore, Signature
Bank <a href=”https://www.financemagnates.com/cryptocurrency/signature-bank-collapse-coinbase-and-paxos-disclose-massive-exposure/” target=”_blank” rel=”follow”>later shut down</a>, becoming the third US bank to fail in the span of
four days.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
