AIRLINK 58.23 Decreased By ▼ -0.37 (-0.63%)
BOP 6.24 Increased By ▲ 0.03 (0.48%)
CNERGY 3.97 Decreased By ▼ -0.02 (-0.5%)
DFML 16.07 Increased By ▲ 0.06 (0.37%)
DGKC 67.61 Increased By ▲ 0.29 (0.43%)
FCCL 17.82 Increased By ▲ 0.27 (1.54%)
FFBL 25.40 Decreased By ▼ -0.49 (-1.89%)
FFL 9.15 Increased By ▲ 0.01 (0.11%)
GGL 9.79 Increased By ▲ 0.02 (0.2%)
HBL 113.77 Increased By ▲ 1.27 (1.13%)
HUBC 111.61 Decreased By ▼ -3.68 (-3.19%)
HUMNL 6.55 Decreased By ▼ -0.04 (-0.61%)
KEL 4.39 Increased By ▲ 0.17 (4.03%)
KOSM 4.59 Increased By ▲ 1.03 (28.93%)
MLCF 37.73 Increased By ▲ 0.62 (1.67%)
OGDC 125.21 Increased By ▲ 8.81 (7.57%)
PAEL 22.61 Decreased By ▼ -0.10 (-0.44%)
PIAA 11.10 Increased By ▲ 0.31 (2.87%)
PIBTL 6.17 Decreased By ▼ -0.08 (-1.28%)
PPL 109.07 Increased By ▲ 5.07 (4.88%)
PRL 26.84 Increased By ▲ 0.45 (1.71%)
PTC 10.48 Increased By ▲ 0.95 (9.97%)
SEARL 52.85 Increased By ▲ 0.86 (1.65%)
SNGP 66.38 Increased By ▲ 1.26 (1.93%)
SSGC 11.01 Increased By ▲ 0.08 (0.73%)
TELE 7.13 Decreased By ▼ -0.08 (-1.11%)
TPLP 11.93 Decreased By ▼ -0.06 (-0.5%)
TRG 76.07 Decreased By ▼ -0.78 (-1.01%)
UNITY 20.47 Decreased By ▼ -0.02 (-0.1%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,441 Increased By 109.2 (1.72%)
BR30 22,098 Increased By 468.8 (2.17%)
KSE100 62,816 Increased By 901.5 (1.46%)
KSE30 21,134 Increased By 282.7 (1.36%)

Wall Street’s main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank.

First Citizens BancShares Inc will acquire parts of Silicon Valley Bank, which collapsed earlier this month in the largest bank failure since the 2008 financial crisis, unleashing fears about a liquidity crunch in the sector.

First Citizens’ shares jumped 44.7%, while First Republic Bank surged 27% on a report that U.S. authorities were considering more support for banks, which could give the embattled regional lender more time to shore up its balance sheet.

Wall Street recovers as Fed officials calm bank fears

“The news about SVB being bought out may be calming some jitters that are going on in the banking sector,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab.

“Every bank that the FDIC steps in on that gets resolved in a manner where people don’t lose money adds another element of confidence to the sector and hopefully then people calm down,” Frederick added.

Regional banks Western Alliance Bancorp and PacWest Bancorp also climbed 4.8% and 6%, respectively.

Shares of major U.S. banks JPMorgan Chase & Co, Citigroup and Bank of America advanced between 1.6% and 3.3%.

The KBW Regional Banking index rose 2.2% while the S&P 500 Banks index gained nearly 3%.

Financial stocks, up about 2%, led sectoral gains, with 10 of the 11 S&P 500 sector indexes higher.

European bank shares also rebounded from declines last week when a spike in Deutsche Bank’s credit default swaps, a type of insurance for bondholders, had exacerbated worries about the health of banks in the region.

U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms, Microsoft Corp and Apple Inc.

Traders have largely priced in that the Federal Reserve will pause rate hikes in May amid lingering worries about the banking sector stress potentially causing a steep economic downturn.

Despite the turbulence in financial markets, in the past two weeks the benchmark S&P 500 and the tech-heavy Nasdaq logged their biggest two-week gain since early February and are on course for a quarterly gain.

Investors are also awaiting a host of economic data this week, including an inflation report that could give more clues about the Fed’s monetary policy path.

At 9:33 a.m. ET, the Dow Jones Industrial Average was up 283.97 points, or 0.88%, at 32,521.50, the S&P 500 was up 27.07 points, or 0.68%, at 3,998.06, and the Nasdaq Composite was up 34.75 points, or 0.29%, at 11,858.71.

Tesla Inc rose 3% with Barclays expecting the electric carmaker’s first-quarter deliveries to beat estimates.

Pinterest Inc gained 5% after UBS upgraded the Social media firm’s stock to “buy” from “neutral”.

Advancing issues outnumbered decliners by a 5.48-to-1 ratio on the NYSE and 2.25-to-1 ratio on the Nasdaq.

The S&P index recorded three new 52-week highs and no new low, while the Nasdaq recorded 17 new highs and 25 new lows.

Comments

Comments are closed.