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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 stayed positive 173.23 points to 32,410.76.
The S&P 500 held onto gains of 4.75 points to 3,975.74.
The NASDAQ Composite gave back 63.32 points to 11,760.64.
Regional banks rose broadly. First Republic was the best-performing stock in the fund, surging more than 15%. PacWest also gained about 5%.
A series of events helped sentiment in the sector. Various media 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.”
Deutsche Bank also rebounded by more than 4% after traders last week targeted the German lender after the forced-takeover of Credit Suisse.
Prices for the 10-year Treasury lost ground, picking up yields to 3.49% from Friday’s 3.37%. Treasury prices and yields move in opposite directions.
Oil prices regained two dollars to $71.26 U.S. a barrel.
Gold prices dulled $25.00 to $1,958.50 U.S. an ounce.
