A reversal in the bank selloff that rattled markets Friday spurred a rebound in stocks, which also gained amid assurances from authorities about financial stability and growing speculation that policymakers will have to stop raising rates to prevent a recession.
After a slide that reached 1% in the first hour of trading, the S&P 500 snapped back and notched its second straight week of gains. A gauge of US financial heavyweights climbed from its lowest level since November 2020. Beaten-down regional lenders drove the recovery, with Citizens Financial Group Inc. and Zions Bancorporation adding at least 2.9%. First Republic Bank tumbled once again, extending this year’s rout to 90%.
