Panic subsides on Wall Street as regional banks rebound
By Allison Morrow, CNN
After a few days of panic over the health of America’s banking system, Wall Street appeared to take a deep breath Tuesday.
Regional bank stocks rebounded Tuesday morning after being pummeled in a Monday selloff that was fueled by a mix of contagion fears and a pile-on of short-sellers who profit when stocks lose value.
Even after the federal government’s intervention Sunday to backstop deposits in two failed lenders, Silicon Valley Bank and Signature Bank, Wall Street had remained wary of smaller and midsize banks that are seen as having similar risks.
The mood was calmer, even jubilant, on Tuesday, partly thanks to the latest inflation report, which showed price surges abating for the eighth month in a row.
First Republic Bank, a lender some suspected would be the next domino to fall in a banking crisis, surged nearly 60% Tuesday after falling by the same amount the day before. Western Alliance Bancorp’s stock rose more than 45%. PacWest Bancorp rose more than 50% after ending Monday down 20%.
The-CNN-Wire
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