Bank shares soared as much as 35% on Wall Street

This day, financial stocks recovered part of their losses, and The S&P 500 Banks Index has rebounded from its biggest one-day drop since June 2020.

In this context, The shares of the main North American banks closed with significant increases led by the Pac West Bancorp in a 33.8%. At the same time, the progress of First Republic Bank (+26.9%) and Western Alliance Bancorporation (+14.4%).

The rises of other banks recognized as Wells Fargo & Company (+2.1%), Citigroup Corp (+5.9%), Bank of America Corp (+0.9%) and Morgan Stanley (+2.3%), Goldman Sachs (+2.1%) and JPMorgan (+2.6%).

It should be recalled that federal authorities closed Silicon Valley Bank last Friday and seized its deposits in the largest bank failure in the United States since the 2008 financial crisis. This collapse, according to some experts, is also the second largest bank failure in history. SVB dragged Signature Bank, a major bank for the cryptocurrency sector, with it.

The collapse of SVB has led various analysts to forecast that the The Federal Reserve (Fed) will take a drastic turn in its monetary policy, something that could be confirmed even with the US inflation data that marked a decrease compared to the previous month.

Markets rebounded in Europe

European banks improved 2.5% after registering their worst daily collapse in more than a year on the eveas moves by US regulators to guarantee SVB’s deposits failed to reassure investors.

The pan-European STOXX 600 index closed up 1.5% amid broader gains, recovering from its worst three-day drop this year, of 3.9%. The index also posted its worst two-day sell-off of 9.4% on Monday since the war between Russia and Ukraine broke out early last year.