Audio Posts and Shared Links Audio Sources - Full Text Articles

Dow, S&P 500 up as SVB deal lifts bank shares; Nasdaq dips


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 Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank’s assets helped investor confidence in banks, while the Nasdaq edged lower.

The S&P 500 banks index (.SPXBK) was up 2.8%, while the KBW regional banking index (.KRX) was up 1.1%.

Shares of JPMorgan Chase & Co (JPM.N) were up 2.9%, helping to support the S&P 500 along with Bank of America (BAC.N), which was up 4.4%.

Shares of First Citizens BancShares Inc (FCNCA.O) were up more than 50% Monday 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 (FRC.N) were up about 11% 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, weighing on the Nasdaq.

Growth stocks have “had a very strong quarter growth stocks, so there may be some profit-taking as we head into the end of the quarter,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

The Dow Jones Industrial Average (.DJI) rose 288.66 points, or 0.9%, to 32,526.19, the S&P 500 (.SPX) gained 21.21 points, or 0.53%, to 3,992.2 and the Nasdaq Composite (.IXIC) dropped 11.95 points, or 0.1%, to 11,812.01.

Shares of Apple (AAPL.O) were down 0.9%. The S&P 500 technology index (.SPLRCT) is up about 16% for the quarter so far.

Crypto shares were also down 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 gainers, Walt Disney (DIS.N) shares were up 1.5% after the company began 7,000 in layoffs announced earlier this year.

Advancing issues outnumbered declining ones on the NYSE by a 3.33-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored advancers.

The S&P 500 posted 6 new 52-week highs and no new lows; the Nasdaq Composite recorded 43 new highs and 110 new lows.

WP Radio
WP Radio