(MENAFN- Baystreet.ca) Dow Shares Rebound as Banks Continue Recovery
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The Dow Jones Industrial Average rose Monday, building on last week's gains, as investors attempted to move on from the crisis that broke out in the regional bank sector earlier this month following the collapse of Silicon Valley Bank.
The 30-stock index zoomed 195.08 points to 32,432.61.
The S&P 500 gained 6.76 points to 3,977.75.
The NASDAQ Composite, on the other hand, retreated 55.12 points to 11,768.84.
Regional banks rose broadly. First Republic was the best-performing stock in the fund, surging more than 11%. PacWest also gained 2.7%.
A series of events helped sentiment in the sector. Various media outlets reported over the weekend that the deposit outflows from small banks to industry giants like JPMorgan Chase and Wells Fargo has slowed in recent days.
Also Bloomberg News reported that U.S. authorities were considering expanding an emergency lending program for banks, which could give
First Republic more time to shore up its liquidity. First Republic ended last week down 46.3% as investors contemplated if the plan from a group of banks to deposit $30 billion would be enough to bolster its balance sheet.
And First Citizens BancShares agreed to buy large parts of Silicon Valley Bank, the U.S. Federal Deposit Insurance Corporation said overnight. The deal includes the purchase of approximately $72 billion of SVB assets at a discount of $16.5 billion, but around $90 billion in securities and other assets will remain“in receivership for disposition by the FDIC,” which is the acronym for the Federal Deposit Insurance Corporation.
Prices for the 10-year Treasury lost ground, picking up yields to 3.54% from Friday's 3.37%. Treasury prices and yields move in opposite directions.
Oil prices regained $3.74 to $73.00 U.S. a barrel.
Gold prices dulled $25.70 to $1,958.30 U.S. an ounce.
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