While the worry over the weekend was that the start-ups that stored their payrolls in SVB would suddenly not be able to pay their employees — a concern the Biden administration has covered now — there was some other fallout.
“When it touches the banking system, it creates concern about the foundations that most people take for granted, so the apprehensions are fundamental,” Wassner said. “I have had many clients ask me what this means and what it might foreshadow.”
While the Dow Jones Industrial Average on Monday slipped a modest 0.3 percent, or 90.50 points, to close at 31,819.14,was hit particularly hard. Among the decliners were Kohl’s Corp., down 8.1 percent to $22.82; Allbirds Inc., 8 percent to $1.15; Under Armour Inc., 7.5 percent to $7.26; Nordstrom Inc., 7.5 percent to $16.87; G-III Apparel Group, 5.2 percent to $15.02, and Abercrombie & Fitch Co., 5 percent to $25.62.
“Consumers do not like risk, they do not like volatility,” said David Bassuk, global leader of the retail practice at AlixPartners. “The [stock] markets know how to read that and the markets are turbulent because of that.
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