Shares of regional banks posted big gains on Tuesday as they regained their footing after huge losses in the previous session, but volatility continued in the sector following the demise of Silicon Valley Bank, Signature Bank and Silvergate Capital in the past week.
While the rise in some cases is eye-popping, most stocks have yet to recover fully from losses in the past few days.
No specific news event triggered the gains, but moves by the federal government to backstop uninsured bank deposits seemed to finally sink in.
While Moody’s put six regional banks under review for a potential downgrade, the rating agency gave credit to First Republic Bank’s “official sector borrowing capacity” and its strong franchise in private banking and private wealth management for high-net-worth individuals.
In morning action, First Republic Bank
rose 39% after losing nearly 62% of its value on Monday.
is rising 46% after retreating by 21% in regular trades on Monday.
Western Alliance Bancorp
jumped 33% after falling back by 47% in the previous session.
rose by 9.8% after a 28% retreat on Monday.
Customers Bancorp Inc.
rose 17.6% after dropping 24% in the previous session.
Metropolitan Bank Holding Corp.
is up by 36.3% after a nearly 44% drop on Monday.
jumped 17% after dropping by 27%, while PNC Financial Services Group Inc.
rose 5.1% after losing 5.2% in the previous session. Citizens Financial Group Inc.
is up by 6.5% after dropping 11% on Monday.
Among exchange-traded funds in the financial sector, the KBW Nasdaq Bank Index
rose 3.9% and the Financial Select Sector SPDR ETF
Also read: This fund manager has long warned of money leaving the financial system as interest rates rise. Here’s his advice for investors right now.