Stocks Rise for First 2-day Rally Since Banking Crisis Began
NEW YORK—Stocks rallied Tuesday, led by the banks most beaten down by the industry’s crisis, and some of Wall Street’s fear washed out on hopes the U.S. government will offer more help if needed.
The S&P 500 jumped 1.3 percent to lock in its first back-to-back gain since Silicon Valley Bank’s rapid failure began two weeks ago. The Dow Jones Industrial Average rose 316 points, or 1 percent, while the Nasdaq composite jumped 1.6 percent.
Markets around the world have pinballed sharply this month on worries the banking system may be cracking under the pressure of the fastest set of hikes to interest rates in decades. This week’s rally now runs into a huge test: On Wednesday afternoon, the Federal Reserve will announce what’s largely expected to be its latest increase to rates….