Midday Market 05/04: Regional bank crisis spreads

PacWest and Western Alliance deny bank collapse news, investors fear impact of QT on FED's market stabilization ability

After Silicon Valley Bank, Signature Bank and First Republic Bank collapsed last week, it seemed the banking sector crisis had temporarily subsided as the FED began signaling a possible pause in rate hikes in the near future. However, the damage to the banking sector last week was quite clear after Q1 report data showed continued widespread deposit withdrawals.