Futures tied to the S&P 500 fell on Monday, erasing early gains as market players weighed plans to stop all depositors at failed Silicon Valley Bank and provide additional funding for other banks.
Futures tied to the broad index lost 0.3%. Futures tied to the Dow Jones Industrial Average were down 236 points, or 0.7%. Stock futures initially rose following Sunday afternoon's announcement of a banking bailout by regulators. Nasdaq-100 futures were still higher by 0.3%.
Financial stocks weighed on the broader market as last week's slide continued. Bank stocks were under pressure, with JPMorgan Chase and Citigroup also falling. Regional banks also fell more, led by a 60% drop in First Republic.
All Silicon Valley Bank depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation.
In a joint statement stating that, "Today we are taking decisive action to protect the US economy by strengthening public confidence in our banking system."
According to Peter Boockvar, chief investment officer at Bleakley Financial Group, he expressed concern about the profitability of banks from their balance sheets.
The Federal Reserve also said it was creating a new Bank Financing Program aimed at protecting deposits. The facility will offer loans of up to one year to banks, savings associations, credit unions and other institutions.
Elsewhere, investors are keeping an eye on various economic reports this week. The consumer price index report is scheduled to be released on Tuesday. February retail sales and the producer price index are also of interest.
