4:05 p.m. ET, March 16, 2023
Stocks close in the green as big bank intervention cheers investors
(Spencer Platt/Getty Images)
Stocks closed higher Thursday after a consortium of big banks said they would lend a hand in the regional bank crisis.
A group of big banks including JP Morgan Chase, Citigroup and Bank of America will provide $30 billion in deposits to First Republic after the bank’s shares plunged on the back of several bank collapses.
The news helped lift up big bank stocks, which have fallen in recent days.
Also alleviating investors’ fears was Credit Suisse’s announcement late Wednesday that it accepted a $53 billion lifeline from the Swiss National Bank for its own crisis, after shares of the Swiss lender tumbled.
The VIX, known as Wall Street’s fear gauge, was at about 23.1 after steadily ticking down throughout the trading session.
Investors are now positioning themselves for the Federal Reserve’s policy meeting next week. The European Central Bank raised its interest rate Thursday morning by half a point despite the banking turmoil, a decision the Fed will face on March 21-22. The CME FedWatch Tool shows a roughly 82% probability that the central bank will raise rates by a quarter point.
The Dow rose roughly 373 points, or 1.2%.
The S&P 500 gained about 1.8%.
The Nasdaq Composite climbed about 2.5%.