major indexes fell on friday as bank stocks struggled following the sudden collapse of one of silicon valleys biggest lenders which launched a failed bid to help shore up cash during the challenging economy and ushered in the stock market’s worst week of the year though it at one point surged on friday morning the dow jones industrial average ultimately fell 345 points or 11 to less than 31910 on friday—pushing weekly losses to nearly 1400 points or more than 4 in the index’s worst oneweek stretch since june the sp 500 and techheavy nasdaq shed 14 and 18 on friday—pushing weekly losses to 46 and 47 respectively dragging down sentiment friday afternoon the federal deposit insurance corporation announced silicon valleybased startup lender svb financial had been shuttered by a california regulator shortly after reports that the bank’s parent company hired advisors to explore a possible sale just two days earlier the bank said it sold 21 billion of its securities portfolio and hoped to raise nearly 23 billion to help bolster its financial position amid a very challenging market and interest rate environment that has led to lower customer deposits—an announcement that pushed shares down a staggering 60 bank stocks—also reeling from the sudden collapse of crypto bank silvergate this week—plunged on the news with jpmorgan chase bank of america and wells fargo falling about 6 apiece on thursday and the sp banks select industry index plummeting nearly 15 this week in an email vital knowledge founder adam crisafulli called silvergate and svb victims of the same phenomenon as the federal reserves campaign to fight inflation extinguishes froth from parts of the economy with the most excess—including crypto and tech banks are the most important sector of the market crisafulli says noting sentiment in the industry can spread to other sectors because of bankings role in financing operations and also pointing out the focus on markets has ominously shifted to the health of institutions with the abrupt banking problems spurring concerns of morestringent financial regulation a mixed jobs report on friday morning did little to quell investor concerns according to the labor department total employment increased by 311000 jobs in february—significantly more than the 225000 figure economists were expecting however the unemployment also unexpectedly ticked up from 34 to 36 signaling more americans have started looking for work it’s no longer accurate to say without reservation that the labor market is a bright spot in the economy glassdoor chief economist aaron terrazas said after the report “the deterioration in market breadth this week goes well beyond the banking space” says adam turnquist of lpl financial as of friday afternoon less than half of the stocks in the sp were trading above their 200day moving average—a highly watched technical indicator that’s far less than the high of 79 earlier this month notes turnquist crypto bank silvergate will shut down amid financial peril forbes