RBA:CC - Stocks Perk as Banking News Improves
Equities in the U.S. continued on their upward path, building on Monday's rally. Traders continued to become optimistic following Treasury Secretary Janet Yellen's latest reassurances to contain the banking crisis.
The Dow Jones Industrials tore out of the starting blocks, gaining 205.43 points to 32,450.01.
The S&P 500 tacked on 28.51 points to 3,980.08.
The NASDAQ Composite jumped 83.85 points to 11,759.39.
Regional banks surged in early trading, led by First Republic. The beaten-down bank jumped 30.7%, a day after losing 47%. Regionals got a boost after Treasury Secretary Janet Yellen said Tuesday morning that the government is ready to provide further guarantees of deposits if the banking crisis worsens.
Investors also welcomed news that JPMorgan Chase could be advising embattled First Republic Bank on strategic alternatives.
Investors now expect a slower pace of tightening from the Federal Reserve in light of the banking crisis. Traders now are pricing in a 83% chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday. The probability of a pause is at 16.6%.
Prices for the 10-year Treasury slid, raising yields to 3.57% from Monday's 3.49%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.39 to $69.03 U.S. a barrel.
Gold prices stumbled $33.80 to $1,983.30 U.S. an ounce.