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European Central Bank raises key policy rate
First Republic Bank shares tank
Meta, Snap climb as U.S. threatens TikTok ban
Dow up 0.84%, S&P 500 up 1.32%, Nasdaq up 1.97%
(Updates prices and comments)
By David Carnevali
NEW YORK, March 16 (Reuters) –
A strong rebound by financials helped Wall Street's main indexes extend gains on Thursday, after media reports said some of the country's largest lenders were in talks to aid First Republic Bank.
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.
Financial institutions, including JP Morgan Chase & Co and Morgan Stanley, stood ready to deposit up to $30 billion into First Republic Bank's coffers to stabilize the lender, according to several reports, including Reuters sources.
"Banks are looking out for one another," said Huntington Private Bank chief investment officer, John Augustine.
"We had two outliers go down and now they want to save what is considered a more mainstream bank."
Shares of JP Morgan and Morgan Stanley were up 1.62% and 1.87% respectively, while the possibility of a rescue buoyed First Republic Bank, which gained 10.72%.
The positive sentiment spread to other regional lenders, with Alliance Bancorp and PacWest Bancorp advancing 12.21% and 0.26%, respectively, after opening in the red.
The KBW regional banking index gained 3.32%, while the S&P 500 banking index advanced 1.65%, as both sub-indexes reversed losses.
Meanwhile, U.S. Treasury Secretary Janet Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed.
U.S.-listed shares of Credit Suisse ticked 2.55% higher after the bank secured a credit line of up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence.
Data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to continued labor market strength, which could persuade the Fed to keep raising rates further.
Weak retail sales figures, as well as data showing a downward trend in producer inflation, on Wednesday had bolstered bets of a small rate hike by the Federal Reserve at its meet concluding on March 22.
Money markets are still largely pricing in a 25-basis-point rate hike by the Fed in March..
The Dow Jones Industrial Average rose 268.11 points, or 0.84%, to 32,142.68, the S&P 500 gained 51.23 points, or 1.32%, to 3,943.16 and the Nasdaq Composite added 225.66 points, or 1.97%, to 11,659.71.
Facebook parent Meta Platforms and Snapchat operator Snap Inc rose 0.59% and 7.35%, respectively, after the U.S. administration threatened to impose a ban on TikTok.
Advancing issues outnumbered declining ones on the NYSE by a 2.45-to-1 ratio; on Nasdaq, a 1.83-to-1 ratio favored advancers.
The S&P 500 posted 3 new 52-week highs and 22 new lows; the Nasdaq Composite recorded 29 new highs and 207 new lows. (Reporting by David Carnevali)
A Federal Reserve rate hike next week looks less likely as bank stocks and the broader S&P 500 resumed their fall on Friday.
Savvy investors can win on their trades whether the market goes up or down, and no one knows this better than Michael Burry. Burry, whose successes in profiting from the financial crisis of 2008 were featured in the book and film The Big Short, has turned his eye to historical analogies, and is hinting at reasons for optimism in today’s environment following last week’s collapse of Silicon Valley Bank. Referring back to the October bank panic of 1907, Burry notes certain similarities with today’
The FDIC is still trying to sell the bank, which is having trouble finding a buyer.
The membership-based warehouse club has said that two major moves are coming that stockholders will love (members won't).
Churning financial markets, as the failure of three U.S. banks and uncertainty over one big European one continues to play out, did not stop some investors from buying that so-called dip in the stock market at one point last week.
The banking crisis is costing most S&P 500 investors serious money. Even Warren Buffett is taking his lumps.
First Republic Bank shares have been hit hard over the past week following the failures of two large U.S. regional banks, Silicon Valley Bank and Signature Bank. What happened to First Republic Bank? First Republic was one of the banks to be swept up in the contagion that followed the March 10 failure of Silicon Valley Bank, because of some similarities including their size, their largely wealthy client base and the largely uninsured nature of their deposit bases.
The Swiss National Bank and regulator Finma now see UBS’s purchase as the only option to tame mounting woes at Credit Suisse, according to news reports.
Is the government doing more harm than good?
Thousands of jobs are set to be lost in the City as regulators race to rescue one of the world's biggest banks before markets open on Monday morning.
(Bloomberg) — Berkshire Hathaway Inc.’s Warren Buffett has been in touch with senior officials in President Joe Biden’s administration in recent days as the regional banking crisis unfolds.Most Read from BloombergCredit Suisse Crisis Nears Finale as UBS Discussions Heat UpTrump Calls for Protests Over Expected Arrest on NY ChargesCredit Suisse Investment Bank Said a Key Sticking Point in TalksCFA Revised Exam Cuts Study Time, Stresses Practical SkillsDeutsche Bank Eyes Some Credit Suisse Assets
Energy Transfer LP (ET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
A major brokerage house was the underwriter and had a price target of $30 on the stock. Didn’t the analyst, a professional, do due diligence before releasing such a high price target to the public? It seems they put a high price target to generate interest in the IPO.
(Bloomberg) — Most Read from BloombergCredit Suisse Crisis Nears Finale as UBS Discussions Heat UpTrump Calls for Protests Over Expected Arrest on NY ChargesCredit Suisse Investment Bank Said a Key Sticking Point in TalksCFA Revised Exam Cuts Study Time, Stresses Practical SkillsDeutsche Bank Eyes Some Credit Suisse AssetsUBS Group AG and Swiss officials are racing to put together a deal for the firm to take over battered rival Credit Suisse Group AG this weekend as they seek to navigate thorny
Here is a look at two Zacks Rank #1 (Strong Buy) Oils & Energy stocks that investors may want to consider as their earnings estimate revisions have trended higher despite crude oil prices declining.
The banking crisis has hit bank stocks hard, with the KBW Nasdaq Bank stock Index dropping 28% since March 3.
Credit Suisse, UBS and their key regulators are working out a deal on the merger of Switzerland’s two biggest banks, according to reports on Saturday.
Boeing has a new flat base, while EV chip play Aehr Test Systems is another stock acting well in a tricky market.
(Bloomberg) — 6 a.m. wake-up calls. Cancelled tennis dates. Anxious check-ins on bond prices while walking the dog.Most Read from BloombergCredit Suisse Crisis Nears Finale as UBS Discussions Heat UpTrump Calls for Protests Over Expected Arrest on NY ChargesCredit Suisse Investment Bank Said a Key Sticking Point in TalksCFA Revised Exam Cuts Study Time, Stresses Practical SkillsDeutsche Bank Eyes Some Credit Suisse AssetsThese are just some of the scenes of traders and money managers over the w
The federal government's decision to backstop all the deposits in failed banks Silicon Valley and Signature Bank — even deposits above the FDIC's federally insured threshold of $250,000 — marked a fundamental change in the U.S. banking system, according to Kevin O'Leary. The banking system will "never go back to normal" after the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corp. said that it would insure all deposits at SVB and Signature, according to O'Leary.