Bank Stocks Bounce as Investors Rethink Economic Outlook
A group of regional bank stocks that came under severe pressure on Thursday, stoking fears of a spiraling banking crisis, surged on Friday, at least partially alleviating those worries.
The rebound came as the market was also bolstered by data on hiring deemed strong enough to soften concerns about a recession without prompting the Federal Reserve to tighten the screws on the economy further.
PacWest soared nearly 80 percent, after falling over 50 percent on Thursday. Western Alliance’s share price rose more than 30 percent, also recouping a chunk of its drop the day before.
The relief rally helped to lift the broader market, with the S&P 500 up 1.5 percent heading into the afternoon.
Source: The New York Times
