SVB collapse: Dow opens down more than 300 points amid bank failure fallout

The market is reacting to Silicon Valley Bank’s failure on Monday morning, with major indices in the red and shares of several smaller banks collapsing.

The Dow Jones Industrial Average opened down more than 300 points before recouping some of those losses in early trading. The tech-heavy Nasdaq fell by more than 1.2%, while the S&P 500 declined by 1.35%.

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The stock market will be closely watched on Monday to get a sense of how panicked investors are about SVB’s Friday collapse, as well as Signature Bank’s Sunday failure. The federal government announced over the weekend that all of the bank’s depositors would be made whole, even those who banked in excess of the federally insured $250,000.

The economic uncertainty was also captured by the Chicago Board Options Exchange Volatility Index, better known as the VIX but also as the “fear index.” The index was up more than 21% on Monday alone, an enormous jump that illustrates the anx