So far today, the stock market is not bothered by the latest events in the banking sector. SMH.
IMHO that's because the S&P 500 is already down over 17% from its ATH (all time high). Historically in bear markets, the S&P 500 jumps wildly on daily news when it's at a high, but not so much when it's on a general down trend (bear market).
The other reason is the Federal Reserve's mirror effect on the market. When the Fed is saying they're gonna hike rates more (which typically lowers the market), any bad news is often received as good news because bad news means the Fed is liable to slow down how much it hikes (or maybe not hike for a while). Basically, the Fed makes bad news good news, and good news is bad news.
It is a dead cat...
It also shows the sheer ignorance of the markets.