The Wall Street Journal report said JP Morgan Chase & Co and Morgan Stanley were among the banks in talks with First Republic Bank that could include a capital injection.
The main indices of Wall Street reverse falls this Thursday, March 16, after a report assured that some US banks were in talks with First Republic Bank for a possible deal, while comments from Treasury Secretary Janet Yellen also boosted investor confidence.
In that sense, the Nasdaq Composite rose 1.7% to 11,636.76 points, just as the S&P500 rose 1.1% to 3,936.50 points. Meanwhile, the Dow Jones advances 0.5% to 32,053.84 points.
The Wall Street Journal report said JP Morgan Chase & Co and Morgan Stanley were among the banks in talks with First Republic Bank that could include a sizeable capital injection and even a full takeover of the bank. Treasury Secretary Janet Yellen told the Senate Finance Committee on Thursday that the nation’s banking system “remains strong” and that Americans “can feel safe” with their deposits.
Financial stocks in the S&P 500 turned from losses in the morning to gains at noon. Treasury yields also suddenly strengthened, a sign of increased confidence in the bond market.
Elsewhere, European stocks rise after the European Central Bank announced a sharp rise in interest rates, around 50 basis points.
Wall Street increasingly expects the banks’ woes to push the Federal Reserve to raise interest rates next week by just a quarter of a percentage point. That would be the same size rise as last month, and would be contrary to expectations from earlier this month that it could go 0.50 points higher as it had potentially been signaling.
Some traders are also betting on the possibility that the Fed will pause on rate hikes next week.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
