NEW YORK/LON-DON: Global bank shares and short-dated US Treasury yields plunged on Monday as concerns over fallout from the collapse of Silicon Valley Bank lingered despite action from regulators.

The US dollar also fell. Gold and silver prices rallied on safe-haven buying.

Bond markets saw a repricing of rate hike bets, with rising expectations for a pause in rate hikes or a lower rate hike pulling Wall Street shares back from earlier losses.

The Dow Jones Industrial Average gained 139.65 points, or 0.44%, to 32,049.29, the climbed 24.19 points, or 0.61%, to 3,885.25 and the gained 152.12 points, or 1.37%, to 11,291.01 by 2:27 p.m. EDT (1827 GMT).

The MSCI world equity index, which tracks shares in 49 nations, gained 0.11%.

European stocks logged their steepest one-day fall this year, with the pan-European STOXX 600 index closing down 2.3%.

Europe’s bank index slumped nearly 6% after shedding 3.8% on Friday. HSBC’s London listed dropped after it said it would acquire the UK subsidiary of stricken Silicon Valley Bank for the token amount of 1 pound ($1.21).

Shares of US regional banks slumped, led by losses in First Republic Bank <FRC.N >as news of fresh financing failed to assuage bank contagion fears.

Swiss financial regulator FINMA on Monday said it was seeking to identify any potential contagion risks for the country’s banks and insurers.

Over the weekend, the Fed and US Treasury announced measures to stabilise the banking system and said depositors at SVB would have access to their deposits on Monday.

The Fed also said it would make additional funding available through a new “Bank Term Funding Program”, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold.