US stocks have opened higher as investors appeared less concerned about the banking sector.
Wall Street gains as banking crisis worries ease
Wall Street’s main indexes have climbed as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank.
First Citizens BancShares Inc will acquire parts of Silicon Valley Bank, which collapsed earlier this month in the largest bank failure since the 2008 financial crisis, unleashing fears about a liquidity crunch in the sector.
First Citizens’ shares jumped 44.7 per cent while First Republic Bank surged 27 per cent on a report that US authorities were considering more support for banks, which could give the embattled regional lender more time to shore up its balance sheet.
“The news about SVB being bought out may be calming some jitters that are going on in the banking sector,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab.