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Brutal Week for Banks Ends With Gains in Stocks: Markets Wrap

  • Yellen, regulators say some banks under stress, system sound
  • Bond traders call the end of Fed hikes amid recession fears
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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%.