4:05 p.m. ET, March 16, 2023
Stocks close in the green as big bank intervention cheers investors up
From CNN’s Krystal Hur
First Republic Bank is displayed on a monitor on the floor of the New York Stock Exchange on Thursday in New York City.
(Spencer Platt/Getty Images)
Shares closed higher on Thursday after a consortium of major banks announced they would help with the region’s banking crisis.
A group of big banks including JP Morgan Chase, Citigroup and Bank of America will make $30 billion in deposits available to First Republic after the bank’s shares plummeted due to multiple bank failures.
The news helped lift big bank stocks, which have fallen over the past few days.
Investor fears were also allayed by Credit Suisse’s announcement late Wednesday that it had accepted a $53 billion bailout from the Swiss National Bank for its own crisis after the Swiss lender’s shares fell.
The VIX, known as Wall Street’s fear gauge, was around 23.1 after steadily ticking lower throughout the trading session.
Investors are now positioning for next week’s Federal Reserve policy meeting. The European Central Bank hiked interest rates by half a point on Thursday morning despite the banking turmoil, a decision the Fed will face on March 21-22. The CME FedWatch Tool shows around 82% Probability of the central bank raising interest rates by a quarter point.
The Dow rose about 373 points, or 1.2%.
The S&P 500 gained about 1.8%.
The Nasdaq Composite was up about 2.5%.
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