First Citizens Bank Shoots Up on Wall Street After SVB Acquisition

First Citizens Bank Shoots Up on Wall Street After SVB Acquisition

First Citizens Bank stood out on the New York stock exchanges on Monday with a price gain of 45 percent. The bank from the state of North Carolina is taking over all bank balances and loans from Silicon Valley Bank (SVB).

The seventeen SVB branches will also reopen as First Citizens offices. The American authorities previously intervened at SVB after customers demanded their credits en masse.

The takeover news relieved investors after recent concerns about financial stability in the banking sector. Regional banks such as PacWest Bancorp and Western Alliance Bancorp gained up to 7 percent, and First Republic Bank even gained almost 28 percent. In addition, reports that bank outflows from smaller banks have slowed in recent days and US authorities are considering expanding the emergency lending program to banks have also fueled optimism.

Major US banks JPMorgan Chase, Wells Fargo, Goldman Sachs, Citigroup and Bank of America gained up to 3 percent.

The overall mood on Wall Street was also positive. Shortly after the start of trading, the Dow Jones index was 0.8 percent higher at 32,488 points. The broad S&P 500 rose 0.6 percent to 3,995 points, and the tech exchange Nasdaq rose 0.2 percent to 11,851 points. The three indicators eventually managed to gain more than 1 percent last week despite the unrest in the banking sector.

Thanks to a positive analyst report from UBS, the digital bulletin board Pinterest rose 5.3 percent. According to experts at the Swiss bank, the share can increase more than 25 percent in value due to plans to improve advertising revenue.

BioNTech fell 4.5 percent. The German biotechnology company, known for the corona vaccine developed with pharmaceutical company Pfizer, expects turnover to fall by more than two-thirds this year. This is mainly due to the falling demand for corona vaccine, the company’s only product. As a result, BioNTech is now focusing more on developing cancer drugs.

Leave a Reply

Back to top