WAL - Why Bank Stocks Like Bank of America Shot Higher Today
2023-05-17 17:15:00 ET
It seems the U.S. banking system won't collapse after all...at least for now. An unexpectedly bullish update from a regional lender many thought was at risk of collapsing bolstered bank stocks on Wednesday.
Quite a few saw notable, market-beating gains, including Bank of America (NYSE: BAC) , which closed the day 4.4% higher, and JPMorgan Chase (NYSE: JPM) with a 3% gain. They were joined by U.S. Bancorp (NYSE: USB) and next-generation lender Upstart Holdings (NASDAQ: UPST) advancing a respective 6.2% and 10.4%.
Banks got off to a rocking start on Wednesday thanks to the latest news from the supposedly vulnerable Western Alliance (NYSE: WAL) . The company said that its deposit base has grown by $1.8 billion on a quarter-to-date basis, and by $600 million since May 2, to reach over $49 billion. Of that latter total, around 79% of deposits are insured by the government's Federal Deposit Insurance Corporation (FDIC).
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Why Bank Stocks Like Bank of America Shot Higher Today