IN NEW YORK: While markets celebrated the apparent containment of a banking industry crisis that has alarmed investors recently, Wall Street equities surged higher on Wednesday.
The likelihood that there will be additional casualties as a result of Silicon Valley Bank and two other local lenders failing is decreasing.
Art Hogan, an analyst at B. Riley Financial, stated that investors have been heartened by lesser volatility in the bond market as “the mini-bank crisis recedes a bit” and that equities investors are looking to what was oversold in the previous few weeks.
At 32,717.60, the Dow Jones Industrial Average recorded a final gain of 1.0 percent.
The tech-heavy Nasdaq Composite Index rose 1.8 percent to 11,926.24, while the broad-based S&P 500 increased 1.4 percent to 4,027.81.
All 11 industrial sectors had growth, but semiconductor companies performed particularly well as a result of a projection from Micron that suggested that demand would go up in the second half of the year.
Micron increased by 7.2 percent, Dow component Intel increased by 7.6 percent, and Nvidia increased by 2.2 percent.
5.1 percent went to PacWest Bancorp, and 5.9 percent went to First Republic, two regional banks.
Lululemon Athletica saw a rise of 12.7% among other businesses after announcing a 30 percent gain in fourth-quarter revenues following a successful holiday season.
