Shares of Amazon.com (NASDAQ: AMZN) rose on Monday after the U.S. government took drastic action to avert a banking crisis. Investors seemed to take confidence that, in particular, many tech companies that buy services from Amazon Web Services will continue to be able to do so now that the government has agreed to make sure no depositors in Silicon Valley Bank lose money. As of 1:23 p.m. ET, Amazon's stock price was up roughly 2%.
The shocking collapse of SVB Financial Group's Silicon Valley Bank late last week sent shock waves through both the financial and tech industries. Silicon Valley Bank was a major provider of loans and other banking services to the venture capital industry and countless tech start-ups The bank was closed by the state of California on Friday and the FDIC was named its receiver.
Many companies in the tech and VC fields feared that Silicon Valley Bank's failure would prevent them from accessing the cash they need to fund their operations. Investors, in turn, worried that many start-ups could be forced to slow their expansion or even shut down completely.
Source Fool.com