Regional Banks Show Recovery on Positive Wall Street

The smaller regional banks in the United States showed some recovery on Tuesday as the new trading day started in New York. A day earlier, these banks fell hard on the stock markets due to the unrest that arose after the collapse of the American Silicon Valley Bank (SVB).

For example, the First Republic Bank from San Francisco shot up almost 50 percent after a share price fall of more than 60 percent on Monday.

Western Alliance Bancorp rose just under 40 percent. The Phoenix-based bank saw almost half its market value evaporate a day earlier. Zions Bancorp and Comerica also rebounded to gain up to 13 percent, and PacWest rose 45 percent. In addition, the major US banks JPMorgan Chase, Bank of America and Wells Fargo, which have also been swept up in the sell-off in the financial sector recently, rose to 5 percent.

The overall mood on Wall Street also improved. The sentiment was supported by the hope that the US central bank may raise interest rates less strongly due to the problems in the banking sector.

Investors also processed the US inflation figure for February. It showed that living in the world’s largest economy became 6 percent more expensive last month. That was as expected. Inflation, therefore, cooled somewhat compared to the 6.4 percent in January.

After half an hour of trading, the Dow Jones index recorded 1.1 percent at 32,177 points. The broad S&P 500 rose 1.7 percent to 3,920 points, and the tech exchange Nasdaq gained 2 percent to 11,406 points.

Facebook parent company Meta announced that it would cut another 10,000 jobs. The company previously announced that it would cut 11,000 jobs. The stock gained more than 5 percent after the news.

United Airlines fell nearly 5 percent after a profit alert. The US airline expects to lose in the current quarter due to lower ticket demand and higher fuel costs. United previously expected a profit this quarter. Taxi services Uber and Lyft and food delivery company DoorDash gained up to 7 percent. The California appeals court ruled that the companies can continue to treat their drivers as self-employed and do not have to hire them permanently.

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