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US stocks rose Monday, as traders grew hopeful that a crisis in the banking sector may be easing. The gains followed a forced takeover of Credit Suisse by UBS engineered by the Swiss government.
The Dow Jones Industrial Average gained 330 points, or `%. Meanwhile, the S&P 500 rose 0.7%, while the Nasdaq 100 gained 0.2%.
Regional banks rose on Monday, rebounding from big losses in the past week as the group was forced to shore up their deposit bases in the wake of the collapse of Silicon Valley Bank. Wall Street expects more actions may be needed to restore confidence in the banking system after U.S. regulators backstopped SVB’s uninsured deposits and offered new funding for troubled banks one week ago.
The SPDR Regional Banking ETF (KRE) gained 1.6% after tumbling 14% last week. PacWest, First Citizens and BankUnited led the gains. However, First Republic shares fell more than 39%, adding to losses of more 71% last week.
