Stocks Rally After Bank Rescue; Yields Jump: Markets Wrap
- Rescue package for First Republic boosts US equities
- Nasdaq 100 logs over 2% gain to close at one-month high
US stocks ended the day higher after a First Republic Bank rescue package was secured, sparking a rebound in shares of embattled regional lenders. Treasuries fell after the European Central Bank delivered a rate hike that added to bets the US central bank will also raise next week.
The S&P 500 notched its largest one-day advance since January after the biggest banks in the US agreed to contribute $30 billion in deposits to First Republic. The regional lender’s shares had tumbled more than 60% before Thursday as investors speculated the bank could be the next to fail after two high-profile demises touched off the crisis last week. An index of regional banks closed higher, the gauge is still down over 20% this March. The tech-heavy Nasdaq jumped 2.7%% to a one-month high.