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First Citizens to buy SVB assets; shares jump
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Bank indexes higher
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Tech shares slip
(Updates to close)
By Caroline Valetkevitch
NEW YORK, March 27 (Reuters) - The Dow and S&P 500 ended
higher on Monday as a deal for Silicon Valley Bank's assets
helped investor confidence in banks, while a decline in
technology shares weighed on the Nasdaq.
The S&P 500 banks index was up sharply, while the
KBW regional banking index was also higher.
JPMorgan Chase & Co and Bank of America were
among stocks that gave the S&P 500 its biggest boost Monday.
Shares of First Citizens BancShares Inc shot up
Monday after it said it would acquire the deposits and loans of
Silicon Valley Bank, which failed earlier this month in the
largest bank collapse since the 2008 financial crisis.
Also, shares of First Republic Bank were up after
Bloomberg reported U.S. authorities were considering more
support for banks, which could give the struggling First
Republic more time to shore up its balance sheet.
Tech-related growth shares were lower, weighing on the
Nasdaq.
Growth stocks have "had a very strong quarter growth stocks,
so there may be some profit-taking as we head into the end of
the quarter," said Tim Ghriskey, senior portfolio strategist at
Ingalls & Snyder in New York.
Unofficially, the Dow Jones Industrial Average rose
195.08 points, or 0.61%, to 32,432.61, the S&P 500 gained
6.76 points, or 0.17%, to 3,977.75 and the Nasdaq Composite dropped 55.12 points, or 0.47%, to 11,768.84.
Shares of Apple were down. The S&P 500 technology
index is up sharply for the quarter so far.
Crypto shares were also down Monday after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an "illegal" exchange and a "sham" compliance program. Among other stock gainers, Walt Disney shares were up after the company began 7,000 in layoffs announced earlier this year. (Reporting by Caroline Valetkevitch in New York and additional reporting by Amruta Khandekar and Ankika Biswas; Editing by Chizu Nomiyama and Aurora Ellis)
