Latest on global stock markets: live updates

4:05 p.m. ET, March 16, 2023

Stocks close in the green as big bank intervention cheers investors

From CNN’s Krystal Hur

First Republic Bank is displayed Thursday on a monitor on the floor of the New York Stock Exchange in New York City.

(Spencer Platt/Getty Images)

Shares closed higher on Thursday after a consortium of major banks said they would lend a hand with the regional banking crisis.

A group of major banks including JP Morgan Chase, Citigroup and Bank of America will provide $30 billion in deposits to First Republic after the bank’s stock collapsed due to several bank collapses.

The news helped lift major banking stocks, which have fallen in recent days.

Also allaying investor fears was Credit Suisse’s announcement late Wednesday that it was accepting a $53 billion bailout from the Swiss National Bank for its own crisis after shares of the Swiss lender collapsed.

The VIX, known as Wall Street’s fear gauge, stood at around 23.1 after falling steadily throughout the trading session.

Investors are now positioning themselves for next week’s Federal Reserve policy meeting. Despite the banking turmoil, the European Central Bank raised its interest rate by half a point on Thursday morning, a decision that the Fed will face on March 21 and 22. The CME FedWatch Tool shows that about 82% chance that the central bank will raise 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 climbed about 2.5%.






Leave a Reply

Your email address will not be published. Required fields are marked *