FDIC Report Triggers Sharp Decline in Bank Stocks and Deposits.

The Dow Jones Industrial Average fell 0.4%, or 130 points, after the Federal Deposit Insurance Corporation revealed bank deposits fell 2.5% during the first three months of 2023, the largest decline since regulators began tracking the metric 39 years ago. All 10 of the largest U.S. banks by market capitalization dropped 1% or more in Wednesday trading, losing nearly $24 billion in value. The decline in deposits was driven by an 8.2% reduction in the volume of deposits above the FDIC-guaranteed $250,000 limit, as investors turned to higher-yield money market funds and safe haven assets like gold.