JPMorgan, Wells Fargo Stocks Tumble as SVB Woes Spark Contagion Fears

Small things can lead to big reactions, and that seems to be the case with bank stocks on Thursday, as a huge loss at


SVB


Financial (ticker: SIVB) has caused stocks like


JPMorgan


Chase (JPM),


Bank of America


(BAC), and


Wells Fargo


(WFC) to get pummeled.

Here’s what’s happening. Silicon Valley Bank’s parent, SVB Financial, said Wednesday night that it had sold securities from its portfolio for a $1.8 billion loss, while also announcing plans to raise capital via an offering of common and preferred stock. SVB Financial stock tumbled 62% to $119.35 on Thursday, its largest drop ever.