Traders work on the floor of the New York Stock Exchange in New York, the US, March 15 2023. Picture: ANDREW KELLY/REUTERS
The latest twist in the regional banks saga came on the heels of a 50 basis point rate hike by the European Central Bank, which earlier in the day had dampened investor sentiment already hurt by fears of a banking crisis. Shares of JPMorgan and Morgan Stanley advanced, while the possibility of a rescue buoyed First Republic Bank.
Concerns about banks have rattled the stock market in recent days after the collapse of SVB Financial fuelled contagion fears. According to preliminary data, the S&P 500 gained 68.67 points, or 1.76%, to end at 3,960.60 points, while the Nasdaq Composite gained 283.85 points, or 2.48%, to 11,717.90. The Dow Jones industrial average rose 377.34 points, or 1.18%, to 32,251.91.