(MENAFN– Baystreet.ca) Dow Rallies 400+ in Effort to Stop 5-Day Skid
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U.S. stocks rallied Tuesday as investors bet the risk of contagion to banks following the closure of Silicon Valley Bank and Signature Bank had been contained.
The Dow Jones Industrials popped 474.66 points, or 1.5%, to 32,293.80, as it tries to end a slump of five straight days.
The S&P 500 leaped 78.62 points, or 2%, to 3,934.98.
The NASDAQ Composite 268.57 points, or 2.4%, to 11,457.41.
Bank stocks rebounded after getting pummeled during Monday’s trading session as investors grew increasingly optimistic that other banks would not face the same fate as Silicon Valley and Signature. Regulators said Sunday that they created a plan to backstop all depositors in the two banks.
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.
Shares of First Republic Bank popped more than 55% after closing down nearly 62% on Monday. KeyCorp shares added 16% in a relief bounce following a 27% slide.
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 remained negative, raising yields to 3.62% from Monday’s 3.55%. Treasury prices and yields move in opposite directions.
Oil prices erased 60 cents to $74.20 U.S. a barrel.
Gold prices flopped $3.90 to $1,912.60 U.S. an ounce.
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