Rally in Bank Shares Lifts U.S. Stocks
The stock indexes were lifted by gains for bank shares and bonds. The banking-sector worries receded and investors turned their focus to this week's Fed meeting.
U.S. stocks rose Tuesday due to increased investor optimism regarding the banking system, with First Republic Bank and other regional banks leading the rally.
Both the Dow Jones Industrial Average and the S&P 500 were buoyed in part by the reassuring comments of global financial authorities. They both posted their second consecutive day of gains for first time since September.
Silicon Valley Bank collapsed
It was less than two weeks ago. The yields on U.S. government bond bonds rose sharply as investors lowered their bets that an economic downturn would force the Federal Reserve into cutting interest rates.