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S&P 500 ends up slightly; SVB deal lifts bank shares

Published 03/27/2023, 05:38 AM
Updated 03/27/2023, 07:42 PM
© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 22, 2023.  REUTERS/Brendan McDermid

By Caroline Valetkevitch

NEW YORK (Reuters) - The S&P 500 ended slightly higher on Monday as a deal for Silicon Valley Bank's assets helped to boost bank shares, while a decline in technology-related stocks limited the day's gains.

The S&P 500 banks index rose 3.1%, while the KBW regional banking index ended up 0.6%.

JPMorgan Chase & Co (NYSE:JPM) shares climbed 2.9% and Bank of America (NYSE:BAC) added 5%. They were among stocks giving the S&P 500 its biggest boost on Monday.

Shares of First Citizens BancShares Inc shot up more than 50% after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.

Also, shares of First Republic Bank (NYSE:FRC) were up 11.8% after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.

Tech-related growth shares were lower, however, and the Nasdaq ended down on the day.

"There's still a lot going on in the financial sector, and it's actually good news today," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

But tech and growth stocks have "had a very strong quarter, so there may be some profit-taking as we head into the end of the quarter."

The Dow Jones Industrial Average rose 194.55 points, or 0.6%, to 32,432.08, the S&P 500 gained 6.54 points, or 0.16%, to 3,977.53 and the Nasdaq Composite dropped 55.12 points, or 0.47%, to 11,768.84.

Shares of Apple (NASDAQ:AAPL) were down 1.2%. The S&P 500 technology index is up more than 16% for the quarter so far.

Crypto shares were also down Monday after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an "illegal" exchange and a "sham" compliance program.

Among other stock gainers, Walt Disney (NYSE:DIS) shares ended up 1.6% after the company began 7,000 in layoffs announced earlier this year.

Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.

© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 22, 2023.  REUTERS/Brendan McDermid

The S&P 500 posted 6 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 128 new lows.

Volume on U.S. exchanges was 10.32 billion shares, compared with the 12.9 billion average for the full session over the last 20 trading days.

Latest comments

Banks have to be babied since their laws make it so easy for the executives to make such enormous returns. Such an embarrassing situation for educated business people.
Yep..the banking crisis is still there...why stocks went up this morning?... only the FED knows
No mention of an imminent FED PIVOT. At least not yet.
Nice to know a single bank will eliminate inflation, prevent a recession, and restore the economy to 6% per quarter growth rates.  A new week with renewed criminal manipulation.  The FED can't let the laughingstock of the financial world go or everything goes with it.  BIGGEST INVESTMENT JOKE IN THE WORLD.
Don't forget bank upgrading each others ........
This is 2008 all over again.
Irrational exuberance
market crash at open.
Great call!
Lets see what Beijing Biden can do today to destroy America
jimmy I have some excellent tinfoil hats for you, right now at a very special price!
stephen you're the only one talking about trump here..
maxi pad, all you do is talk about Trump. Everyone here knows you and the other 3🐑
How much does he sell stocks? MM, price shak
time for MM to sell shares at higher price........ investors buy......later crisis again to create panic selling where MM buy at lower price....
This is the comment i was looking for
keep foolish yourself
No mo haig
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