Banks Talking to Boost First Republic Deposits - InvestingChannel

Banks Talking to Boost First Republic Deposits

Stocks rose Thursday as Wall Street grew increasingly optimistic after a group of banks said it would aid First Republic Bank amid the industry’s crisis.

The Dow Jones Industrials perked 371.98 points, or 1.2%, to 32,246.55.

The S&P 500 hiked 68.35 points, or 1.8%, to 3,960.28.

The NASDAQ Composite changed direction and climbed 283.23 points, or 2.5%, to 11,717.28, as investors bought technology stocks on

hopes that the crisis could push the Federal Reserve to shift its outlook on monetary policy at its meeting next week.

Also boosting markets was an announcement from Credit Suisse overnight that it will borrow up to nearly $54 billion from the Swiss National Bank to assure short-term liquidity. U.S. shares of the embattled bank fell to a record low Wednesday following reports that the Saudi National Bank, Credit Suisse’s largest investor, said it would not provide additional assistance.

Investors have been closely watching bank stocks after the closures of Silicon Valley Bank and Signature Bank prompted concerns of contagion in the sector in recent days. Despite concerns in the sector weighing on the minds of investors, all three indexes are on pace to end the week higher, led by the Nasdaq Composite with a 5.2% advance.

Investors around the world also followed the announcement of a further rate hike of 50 basis points from the European Central Bank Thursday.

The decision comes as U.S. investors ready for the Federal Reserve policy meeting next week. Big technology shares such as Amazon and Alphabet gained more than 3%.

Prices for the 10-year Treasury sagged, raising yields to 3.58% from Wednesday’s 3.47%. Treasury prices and yields move in opposite directions.

Oil prices reclaimed 60 cents to $68.21 U.S. a barrel.

Gold prices retreated $7.60 to $1,923.70 U.S. an ounce.

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