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Bank Stocks Lead Rally After First Citizens BancShares Buyout of Silicon Valley Bank

Posted March 27, 2023 at 9:45 am
Patrick J. O’Hare
Briefing.com

The S&P 500 futures are up 24 point and are trading 0.7% above fair value. The Nasdaq 100 futures are up 32 points and are trading 0.4% above fair value. The Dow Jones Industrial Average futures are up 208 points and are trading 0.6% above fair value.

The stock market is poised for a higher open with bank stocks leading the charge follow reports that First Citizens BancShares (FCNCA) will acquire all deposits and loans of Silicon Valley Bank (SIVB). Also, President Biden said that FDIC insurance could be tapped for deposits above $250,000 if additional banks fail, according to Reuters.

Investors are also reacting to news that the U.S. is considering expanding an emergency lending facility for banks in a way to give First Republic (FRC) additional time, according to Bloomberg

Aside from First Republic Bank (FRC) and First Citizens BancShares (FCNCA), other bank stocks are trading up this morning in solidarity. PacWest Bancorp (PACW), KeyCorp (KEY), and Western Alliance Bancorp (WAL) are standouts in that regard.

Treasury yields are moving higher this morning. The 2-yr note yield is up 18 basis points to 3.95% and the 10-yr note yield is up 11 basis points to 3.49%. The U.S. Dollar Index is down 0.1% to 103.07.

Energy complex futures trade mixed. WTI crude oil futures are up 1.4% to $70.26/bbl and natural gas futures are down 3.2% to $2.29/mmbtu.

Originally Posted March 27, 2023 – Bank stocks lead rally after First Citizens BancShares buyout of Silicon Valley Bank

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