The Dow Jones Industrials recovered 336.26 points, or 1.1%, to 32,293.80, to end a slump of five straight days.
The S&P 500 leaped 64.8 points, or 1.7%, to 3,920.56.
The NASDAQ Composite 239.31 points, or 2.1%, to 11,428.15.
Investors’ enthusiasm for buying bank stocks lost some steam in the afternoon. But many still notched gains, marking a turn from two sessions of deep selloffs as investors became increasingly confident that those names wouldn’t suffer the same fate as Silicon Valley and Signature. Regulators said Sunday that they created a plan to backstop all depositors in the two banks.
Shares of First Republic Bank popped nearly 27% after closing down nearly 62% on Monday. KeyCorp shares added almost 7% in a relief bounce following a 27% slide.
Meantime, the U.S. Securities and Exchange Commission and the Justice Department are investigating how Silicon Valley Bank became the second largest bank failure in U.S. history, the Wall Street Journal reported Tuesday.
The consumer price index rose 0.4% in February from January, matching the consensus estimate of economists polled by Dow Jones. The annualized increase of 6% was also in line with economists’ expectations. So-called “core” CPI, which removed volatile food and energy prices, grew from the prior month slightly more than economists expected at 0.5%, while the year-over-year increase of 5.5% came in line with what they anticipated.
Prices for the 10-year Treasury tumbled, raising yields to 3.68% from Monday’s 3.55%. Treasury prices and yields move in opposite directions.
Oil prices erased $3.31 to $71.49 U.S. a barrel.
Gold prices floundered $8.30 to $1,908.20 U.S. an ounce.