Stocks close higher on Monday as banking crisis fears ease: Live updates
Stocks closed higher on Monday as traders grew hopeful that a crisis in the banking sector may be easing. The gains followed a forced takeover of Credit Suisse by UBS engineered by the Swiss government.
The Dow Jones Industrial Average jumped 382.60 points, or 1.20%, to close at 32,244.58. Meanwhile, the S&P 500 rose 0.89% to end the session at 3,951.57. The Nasdaq Composite gained 0.39% and closed at 11,675.54.
Regional banks rose on Monday, rebounding from big losses in the past week. Wall Street expects more action may be needed to restore confidence in the banking system after U.S. regulators backstopped SVB's uninsured deposits and offered new funding for troubled banks.
The SPDR Regional Banking ETF (KRE) gained more than 1% after tumbling 14% last week. PacWest, First Citizens and Fifth Third Bancorp were among the major gainers. The ETF rose 5% at one point during the trading session, but saw some of its gains reverse as First Republic shares fell 47%.
"There's just a fundamental issue here," said Eric Diton, president and managing director of The Wealth Alliance. "People who are holding uninsured deposits at regional banks are nervous and the banking system is based on confidence and trust. You're not going to put your life savings somewhere, if you're not 100% confident that it's going to be there when when you need it."
The instability in the financial sector over the past two weeks raises the stakes for the Federal Reserve's interest rate decision on Wednesday. As of Monday, there was about a 73% chance of a quarter-point increase by the Fed, according to CME Group's FedWatch tool. The other roughly 27% is in the no-hike camp, anticipating that Chairman Jerome Powell may start to ease his aggressive tightening campaign that began in March 2022, in the face of the emerging financial contagion.
"We're still not feeling the full effects [of the rate hikes]. Regional banks, which account for maybe around a third of all lending in the United States, [are] now going to have to pull back on lending to shore up their balance sheet," Diton said.
"That's much tighter capital for the whole economy. It does the Fed's work [of] trying to slow down the economy. So whether they do nothing, or they raise 25 basis points [on Wednesday], I think there's a good chance that they may very well sit and wait after that," added Diton.
Lea la cobertura del mercado de hoy en español aquí.
Correction: The Wealth Alliance's Eric Diton said, "People who are holding uninsured deposits at regional banks are nervous and the banking system is based on confidence and trust." An earlier version of this story misstated his quote.
Stocks close higher to begin the week
The three major averages ended Monday higher as investors expressed guarded optimism over the state of the banking sector.
The Dow Jones Industrial Average closed 1.20% higher, while the S&P 500 added 0.89%. The Nasdaq Composite added 0.39%.
JPMorgan's Kolanovic warns of 'Minsky moment'
Markets are facing a possible "Minksy moment" ahead as financial and geopolitical risks mount, according to JPMorgan strategist Marko Kolanovic.
""The possibility of a Minsky moment in markets and geopolitics has increased," he wrote in a client note Monday. "Even if central bankers successfully contain contagion, credit conditions look set to tighten more rapidly because of pressure from both markets and regulators."
The term refers to moment when markets break down, often following high amounts of speculation and easy policy.
"The outbreak of financial market stress is set to have a material effect on monetary policy for some time to come, as risks to the outlook have changed," Kolanovic added.
A Fed rate hike would be a mistake, says MKM's Michael Darda
The Federal Reserve may hike interest rates by 25 basis points when it meets this week, despite the banking crisis, but "that would be a mistake," said MKM Partners' chief economist, Michael Darda.
Even if the central bank skipped a rate increase, monetary conditions will likely continue to tighten, he said.
"A backward looking monetary policy will put us into perpetual boom and bust cycles and we are moving into the bust phase now," Darda said in an interview with CNBC's "The Exchange."
However, looking forward will take a leap of faith and the Fed doesn't want to do that, he said.
"That sets up for potentially drastic tightening in monetary conditions, which simply could be the neutral interest rate falling as the banking crisis gets worse."
Darda said the S&P 500 could have to fall 15% to 20% for it's buying opportunity. In this environment, health care is his favorite sector.
— Michelle Fox
Energy leads S&P 500 in Monday's session, reversing course from last week
Despite being a worst-performing sector last week, energy stocks within the S&P 500 have staged a comeback in Monday's session.
The sector was up 2.2% in Monday's session, regaining some ground after dropping 7% last week. Materials, the next best performer on Monday, advanced 1.7%.
Energy's climb comes amid a broad rally for the index. Nine of the eleven sectors were trading positive, while information technology and consumer discretionary traded within 0.1% of the flatline shortly after 2:30 p.m. ET.
— Alex Harring
JPMorgan advising First Republic on potential capital raise, sources tell Faber
JPMorgan Chase is advising embattled First Republic Bank on strategic alternatives after last week's $30 billion deposit failed to stop the slide for the bank's stock, sources told CNBC's David Faber.
The alternatives may include a capital raise, the sources said, which could dilute current shareholders. A sale of the bank is also a possibility.
The stock was last down about 39% for the session.
— Jesse Pound
S&P 500 still under technical pressure despite last week's strong showing
The S&P 500 posted a solid gain last week, but Bank of America's Stephen Suttmeier isn't sounding the all-clear yet.
The bank's technical strategist said in a note Monday that the broader market index posted a second straight weekly close below its 40-week moving average.
"Last week's bounce suggests support from 3810 to 3764," he said. "Resistance comes in at the March MTD peak at 4078 and the December highs near 4101. The SPX pattern remains challenged if the index stalls within the zone of the 13, 26 and 40-week MAs from 3903 to 3979 or near the 4078-4101 resistance."
— Fred Imbert, Michael Bloom
Fed pause could create 'panicked reactions,' says Nationwide's Hackett
A pause from the Federal Reserve this week could mean bad news for equities and the bond market, according to Nationwide's Mark Hackett.
"While the bond market is increasingly betting on a pause in rate hikes, the equity market is expecting a 25-basis point hike," the chief of investment research said. "If the Fed pauses its tightening, we expect panicked reactions by equity and bond investors."
Hackett also said he is optimistic that the bond market can weather the storm despite "signs of stress." That's because of the sector's solid capital position versus 2008 and the resilience of the equity market, he wrote.
— Samantha Subin
Stocks are 'closer to oversold' but traders should stay on guard, Canaccord Genuity says
Some indicators are flashing near-oversold conditions, but investors should stay on guard ahead of this week's Federal Reserve meeting, according to Canaccord Genuity.
The S&P 500 has remained resilient in the wake of ongoing banking concerns, but other markets are under "significant pressure," according to analyst Tony Dwyer in a Monday note. The analyst cited the Equal Weighted SPX and the Russell 2000, both of which have given back this year's gains; As of Monday trading, they're off by 1.4% and about 0.7% in 2023, respectively.
While that could mean a "sharp rally" up ahead, the analyst said investors should remain on the defensive as markets could retest October lows.
"The poor performance underneath the surface of the major market indices coupled with a near oversold condition in our key tactical indicators may be setting the stage for a sharp rally," Dwyer wrote.
"Our game plan remains the same: stay lighter in exposure and slightly defensive in sector allocation and stand ready to take advantage of any weakness if/when bad news becomes bad news and the market moves back to/below the October low," he added.
— Sarah Min
Stocks making the biggest midday moves
Here are some of the names making the biggest moves in midday trading:
- UBS, Credit Suisse — U.S.-listed shares of Credit Suisse dove nearly 52% after UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion. UBS shares gained about 5%.
- US Bancorp — The stock rallied nearly 6% after being upgraded to outperform from neutral by Baird. The Wall Street firm said US Bancorp could benefit as the bank crisis pushes depositors to move holdings to larger regional banks.
- Virgin Orbit— Shares tumbled more than 35% as the company scrambled to secure funding and avoid bankruptcy, which could come as early as this week without a deal, according to people familiar with the matter.
To see more stocks making moves in midday trading, read the full story here.
— Michelle Fox
DoubleLine's Sherman says it's too early to hunt for credit opportunities
DoubleLine Capital CIO Jeffrey Sherman believes the banking crisis is still unfolding and it's too early to look for buying opportunities in credit markets.
"Right now we've only seen the tip of the iceberg of some of the stuff out there," Sherman said on CNBC Monday. "It leads to wider spreads and leads to a higher cost of capital. That means there's even more stress on those companies."
Sherman said investors should avoid taking on extremely speculative risks such as the lower credit tiers.
"I think this is not over yet. We need to be very careful in terms of looking at some of those distressed opportunities," Sherman said.
— Yun Li
First Republic extends losses after report that Jamie Dimon is exploring more support
Shares of First Republic fell to their lows of the day after a Wall Street Journal report that JPMorgan CEO Jamie Dimon was leading efforts by large banks to potentially offer more support to the struggling regional bank.
Last week, JPMorgan and 10 other banks announced a $30 billion deposit into First Republic. Further help could involve converting part or all of that $30 billion into a capital infusion, the report said.
Shares of First Republic were down more than 40% following the report.
— Jesse Pound
Small caps on pace for best day in over a month
Small caps stocks rose on Monday, with the Russell 2000 up more than 2% at session highs and on pace for this best day in at least a month.
If the sector finished up more than 2.06%, small caps would notch their best day since Feb. 2. A gain or 2.45% or more would mark the best day since Jan. 31.
Some stocks leading the gain in small caps included Franchise Group, Talos Energy and Arbor Realty Trust, up 10.3%, 10.1% and 6.7%, respectively.
— Samantha Subin, Gina Francolla
Nelson Peltz says government should expand its deposit insurance program to protect against bank runs
The federal government should expand its guarantee to all bank deposits regardless of size in order to slow bank runs, but it should charge customers for that insurance, hedge fund manager Nelson Peltz said Monday.
The Trian Fund Management founding partner told CNBC that customers pulling money out of smaller banks is a "dangerous situation" and that he has talked to elected officials about expanding the deposit insurance program that is currently capped at $250,000 per account. The change would involve paying insurance premiums to the Federal Reserve.
"I would put together a plan that applies only to U.S. banks in that the Fed gets an insurance premium for any money you leave in a U.S.-accredited bank over $250,000. So you're creating income for the Fed, and in exchange for that they insure the overage," Peltz said on CNBC's "Squawk on the Street."
The full story can be found here.
— Jesse Pound
Not every tech stock is a 'bastion of safety' in this environment, Raymond James says
Investors have flocked to tech stocks in recent weeks as yields tumble and banking fears rattle financial markets. But not every tech stock is a safety trade.
"Although technology and tech-related areas have been a bastion of safety in large cap land, it is incorrect to say that investors are moving to tech for safety, as this dynamic has not played out across small and mid cap tech," wrote Raymond James analyst Tavis McCourt in a Sunday note to clients.
Just like 2020, many investors have moved into megacap tech stocks recently, with Alphabet, Meta Platforms and Salesforce up more than 12% this month. Nvidia's gained 10.5%, while Microsoft and Apple have added 8.9% and 6%, respectively.
Month to date, the S&P 500's communication services sector's gained more than 5% this month. But broken down, only large cap stocks appear to be outperforming, with shares of names like Match Group, Paramount Global and Fox down for the month.
— Samantha Subin
Apple stock adds to recent gains, heads to key technical level
Apple stock has been in a breakout zone and is continuing to steam higher, after a roughly 4.5% move up last week.
Apple stock rose about 1.8% in late morning, trading just under $157, its highest level since October.
Scott Redler, partner with T3Live.com, is watching the stock heading into the Federal Reserve's rate decision Wednesday afternoon. The meeting will be followed by a briefing from Fed Chairman Jerome Powell. The Fed meeting is viewed as a potentially significant catalyst for the market.
"AAPL's pattern is building nicely. If this market wants to respond well post-Powell, this can be a vehicle to propel things," wrote Redler in a note Monday morning. "Holding $153ish keeps active longs in. It will need a high-volume move and close above $157.50 to ignite the pattern. We'll see."
Regional bank stocks rebound from steep losses
U.S. regional bank stocks clawed back into the green on Monday after facing steep losses in the market last week.
PacWest Bancorp rose 18.6% and Fifth Third Bancorp rose 7.6%, while Zions Bancorp and KeyCorp gained 4.7% and 4.3%, respectively. The SPDR S&P Regional Banking ETF recently gained 4.3% and the KBW Nasdaq Regional Banking Index was up 3.9%.
While its rivals are bouncing back, shares of First Republic Bank slid on Monday after Standard & Poor's cut the credit rating of the San Francisco-based firm on Sunday. The stock is down nearly 14.5%.
— Pia Singh
Small businesses are seeing squeezed profits, says Bank of America
Last month, Bank of America saw the ratio of inflows to outflows in its small business checking and savings accounts drop to its lowest February reading over the past five years. The bank views the ratio as a proxy for profits.
"The latest data from the National Federation of Independent Business shows that small business sentiment in February ticked up slightly but was still near its decade low," Bank of America economists Anna Zhou and Taylor Bowley wrote in a note to clients last week. "Small businesses are facing crosscurrents, but headwinds from higher costs appear to be blowing slightly stronger than consumer-related tailwinds, leaving profits increasingly squeezed."
The net account inflow remained positive for January and February combined, however, the bank noted. The inflow-to-outflow ratio for small businesses, based on the bank's internal data, remained lower in 2022 compared to prior years.
— Pia Singh
New York Community Bancorp jumps following news subsidiary will absorb parts of Signature Bank
New York Community Bancorp surged nearly 40% after news that a subsidiary would take over parts of closed Signature Bank.
The Federal Deposit Insurance Corporation announced over the weekend that Flagstar Bank, a subsidiary of the company, would take over basically all of Signature's deposits and all 40 of its former branches, as well as some of its loan portfolios.
Signature Bank, a major crypto lender, was closed on March 12 as regulators attempted to prevent the bank crisis that began with Silicon Valley Bank's closure from spreading. Regulators said the same day the bank was closed that all depositors would be made whole.
— Alex Harring
Oil prices drop amid global banking turmoil
The front-month April WTI Nymex was lower by 1.45% on Monday, trading at $65.75 per barrel. That level is still above Friday's low of $65.17, which was the lowest level since December 2, 2021 when WTI traded as low as 62.43
Brent oil prices also dipped into the red, recently down 0.7%, or at $72.47 per barrel.
— Pia Singh
Lack of confidence in banking sector remains, says OANDA's Ed Moya
The banking system "still doesn't have any confidence" despite the UBS buyout of Credit Suisse, according to OANDA's senior market analyst Edward Moya.
"Despite a couple major weekend attempts to contain the risks hitting the banking system, US stocks are wavering as risk aversion won't be going away until markets are confident that the Fed is done with their rate hiking campaign," said Moya.
"The banking system still doesn't have any confidence as Wall Street tries to send yields sharply lower," Moya added.
The analyst anticipates the Federal Reserve will relax its aggressive monetary policy tightening campaign on its announcement on Wednesday.
"It looks like credit conditions will continue to tighten while monetary policy conditions are expected to loosen as the economy heads to a recession," said Moya.
— Hakyung Kim, Alex Harring
Dow pops at the open
The Dow Jones Industrial Average gained 193 points, or 0.61%. Meanwhile, the S&P 500 rose 0.18%, while the Nasdaq 100 fell 0.5%.
— Hakyung Kim
Bond king Gundlach says Treasury yields have yet to bottom
DoubleLine Capital CEO Jeffrey Gundlach said Treasury yields have more room to fall amid the unfolding banking crisis.
"Looking at the charts, it seems UST yields have not bottomed," Gundlach said in a tweet Monday morning.
The benchmark 10-year Treasury yield fell more than 30 basis points last week, while the rate-sensitive 2-year rate tumbled over 70 basis points during the same period. The decline came as investors flocked to safe haven assets amidst the spreading upheaval in the banking crisis.
The bond king also warned that the rapid steepening of the Treasury yield curve after a sustained period of inversion is "highly suggestive of recession very soon."
Gundlach said last week that the Federal Reserve will still pull the trigger on a small rate hike to save the central bank's credibility.
— Yun Li
Bitcoin surges to nine-month high as Treasury yields touch six-month low
Bitcoin climbed to $28,551.73 in early trading, the highest level since June 12, 2022, when bitcoin traded as high as $28,647.91.
Ether reached $1,846.25, the highest level since Aug. 19, 2022, when ether traded as high as $1,879. Coinbase is on pace for its 6th straight daily advance.
The moves came as 2- and 10-year Treasury yields fell to their lowest levels in six months. The U.S. 2-year yield fell to 3.635%, the lowest since Sept. 13, while the U.S. 10-year yield touched 3.291%, the lowest since Sept 12.
— Scott Schnipper, Gina Francolla
Dell's demand challenges will subside, Goldman Sachs predicts
Investors should look past near-term pressures on demand at Dell, according to Goldman Sachs.
Analyst Michael Ng initiated coverage of Dell with a buy rating. His price target of $43 implies the stock will gain 15.5% over the next year from where it closed Friday.
"Although we recognize that DELL's business is highly cyclical, we believe DELL's valuation is attractive at 7X NTM P/E and a long-term target of at least 100% FCF to net income conversion to fund shareholder capital returns," Ng said in a note to clients Monday.
CNBC Pro subscribers can click here to read the full story.
— Alex Harring
Shares of UBS, other big bank stocks can benefit from UBS-Credit Suisse deal, analysts say
UBS' takeover of Credit Suisse could bring gains for shareholders, according to Bank of America.
Bank of America analyst Alastair Ryan upgraded U.S.-listed shares of UBS to buy from neutral. Ryan also increased his price target to $24.81 from $22.65. His new target implies the stock could rally 36.3%.
"The industrial logic is impeccable: CS was the closest competitor to UBS in wealth management and Switzerland; and both banks are heavy in Swiss central costs," he said in a Monday note to clients.
Meanwhile, others on Wall Street see an opportunity for U.S. banks.
"To us, this merger further displays that the largest U.S. capital players can continue to gain global market share, as they've done for the past decade," Wells Fargo analyst Mike Mayo said.
CNBC Pro subscribers can read more about what the Street thinks about the deal and its ramifications across a sector in crisis here.
— Alex Harring
Bitcoin trades flat after breaking through $28,000 over the weekend
Bitcoin was flat on Monday morning after breaking through the $28,000 level over the weekend for the first time in more than nine months.
The price last inched lower by 0.09% to $28,300.90, according to Coin Metrics. Earlier in the day it traded as high as $28,551.73 for the first time since June 12. It's now up more than 70% year-to-date. Meanwhile, ether lost about 2% to trade at $1,788.70.
Bitcoin's big move higher came around the time news broke that UBS had agreed to buy Credit Suisse, in a deal worth more than $3 billion. That eased worries by investors that the spillover from the U.S. regional banks to larger money center banks would be limited.
The move also raised the stakes for the Federal Reserve's interest rate decision on Wednesday. Some now believe the Fed will ease the pace of its inflation-fighting rate hikes thanks to emerging financial contagion.
— Tanaya Macheel
Altman says a Fed pause could 'undermine' market confidence
Evercore Chairman Roger Altman thinks the Federal Reserve could lessen market confidence in the financial system if it holds off on an interest rate hike this week.
"I'm not sure that a pause would instill confidence as compared to undermine," Altman said Monday on CNBC's "Squawk Box."
Markets mostly expect the Fed to approve a 0.25 percentage point hike when it concludes its two-day meeting Wednesday. However, it's likely to be a close call, and Altman said policymakers will be watching the news ahead closely.
"I'd like to see the Fed go ahead on a 25 basis point hike, but I honestly don't know what's going to be done and I'm not sure that it won't be affected by the events of the next 48 hours," he said.
Fed will hold off a hike this week because of banking stress, Goldman says
The Federal Reserve will shy away from another rate hike on Wednesday because of the stress on the banking sector, according to Goldman Sachs.
"While policymakers have responded aggressively to shore up the financial system, markets appear to be less than fully convinced that efforts to support small and midsize banks will prove sufficient," Goldman economists wrote in a note on Monday.
Prior to the collapse of Silicon Valley Bank, the debate among economists was whether the Fed should hike by 50 basis points or 25 basis points at its next meeting due to high inflation readings in recent weeks.
— Jesse Pound
First Republic shares fall in premarket on S&P credit cut
Shares of First Republic tumbled more than 19% in the premarket after Standard & Poor's cut the credit rating of the bank to B+ from BB+ on Sunday.
The S&P first lowered First Republic's credit rating to junk status last week. The rating remains on CreditWatch Negative, said S&P.
First Republic has already lost 80% this month after the collapse of Silicon Valley Bank caused investors to become concerned about other regional banks with large uninsured deposits.
However, the SPDR S&P Regional Banking ETF was up 0.93% in premarket trading.
— Michelle Fox, John Melloy
European markets turn higher
European stock markets reversed higher Monday morning as investors digested news of UBS's takeover of Credit Suisse.
The pan-European Stoxx 600 index last traded 0.5% higher, while Germany's DAX rose 0.7% and the U.K.'s FTSE 100 gained 0.3%. These benchmarks initially opened lower with bank shares leading the losses.
— Yun Li
UBS and Credit Suisse shares trading lower
U.S.-traded shares of UBS and Credit Suisse were down on Monday before the bell.
UBS shares fell more than 4% as of 7:19 a.m. ET. The stock had previously dipped 5.5% during Friday's trading session. Meanwhile, Credit Suisse shares tumbled almost 59% during premarket trading.
The declines come after UBS announced it would buy Credit Suisse as part of a cut-price deal in an effort to stem the risk of contagion to the global banking system.
— Hakyung Kim
Rallies should 'most likely' be faded, JPMorgan traders say
Traders at JPMorgan said in a note Monday it's "most likely" that any stock market rally should be faded at this point.
"At this time a sustained rally seems difficult to come to fruition," they wrote. "Longer-term, to achieve a rally, we need inflation materially lower (say 3.5% or less), earnings to accelerate higher, and you need the banking crisis solved. Any near-term rally is likely driven by light positioning and rotation within Equities toward Tech/MegaCap Tech which has an outsized impact at the index level."
"A recession seems to be a certainty given the banking crisis and the expectation for additional 'unknown unknowns' to emerge. Combined, this feels like another bear market rally rather than the beginning of a new bull market," they added.
— Fred Imbert, Michael Bloom
First Republic shares fall again
First Republic shares were under pressure once again Monday, down 15% in premarket trading, after S&P cut its credit rating on the regional bank to B+ from BB+ on Sunday.
"The deposit infusion from 11 U.S. banks, the company's disclosure that borrowings from the Fed range from $20 billion to $109 billion and borrowings from the Federal Home Loan Bank (FHLB) increased by $10 billion, and the suspension of its common stock dividend collectively lead us to the view that the bank was likely under high liquidity stress with substantial deposit outflows over the past week," stated S&P in its note.
— John Melloy
European banking stocks slide
Bank stocks slid at the open Monday, with Credit Suisse and UBS driving the fall.
Banking stocks were down 2.75% by 9:17 a.m. London time, paring some losses.
Credit Suisse shares were down 58%, while UBS recovered slightly to trade 9% lower by 9:17 a.m. London time after the latter agreed to an emergency takeover of its embattled rival.
Other banks also lingered in the red, with ING Groep, Deutsche Bank and Barclays all down over 5%.
— Katrina Bishop
European stocks open lower
European stocks were lower in early trade as investors assessed a news-filled weekend that resulted in a UBS takeover of Credit Suisse.
The Stoxx 600 index was 1.4% lower at 8:30 a.m. London time, with losses across the major stock exchanges and in all sectors bar utilities.
— Jenni Reid
Shares of Australian gold miners spike as gold trades near one-year high
Shares of Australian gold miners surged on Monday morning as gold prices traded near a one year high, bucking the wider trend in Australian markets.
Gold traded at $1,977.70 per ounce on Monday, its highest level since April 2022.
Evolution Mining led the gold mining sector as its shares jumped 11.05%, while Newcrest Mining and Kingsgate Consolidated also saw gains of 5.58% and 3.36% respectively. The wider S&P/ASX 200 was down 1.2%.
— Lim Hui Jie
CNBC Pro: Time to buy the tech rally? Hedge fund manager Dan Niles and others reveal their top picks
The tech sector was one bright spot last week as the banking crisis rocked markets.
But is it time to buy into the rally? Market pros urge caution — but think some stocks are set to outperform.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Regional bank stocks under pressure amid banking crisis fears
Regional bank shares plunged last week as Wall Street grew anxious over a wider banking crisis.
The SPDR Regional Banking ETF (KRE) declined 6% on Friday, ending the week 14% lower. First Republic was the worst performer among regional banks, with shares plunging 72% in the week through Friday's close.
PacWest fell 19% Friday, while US Bancorp and Western Alliance dropped 9% and 15%, respectively.
— Hakyung Kim
CNBC Pro: From Tesla to under-the-radar battery stocks: Wall Street has a playbook for the EV boom
The opportunity in global EVs is massive, with the European market alone set to be worth $300 billion by 2030, according to estimates from Bernstein.
While EV automakers may be an obvious play, Wall Street analysts have named a slew of stock picks across a range of sectors as a way to cash in.
Pro subscribers can read more here.
— Zavier Ong
FDIC to sell Signature Bank assets to unit of New York Community Bank
The FDIC announced a deal to sell "substantially all deposits and certain loan portfolios" of Signature Bank to Flagstar Bank, a subsidiary of New York Community Bancorp.
The agency said Signature's 40 former branches will begin operating under Flagstar's name on Monday.
The agreement involves $38.4 billion of Signature's assets, including $12.9 billion of loans the FDIC said were bought at a discount of $2.7 billion.
It said, however, Flagstar's bid did not include the roughly $4 billion in deposits related to Signature's digital banking business. The agency said it will provide those deposits directly to digital banking customers. The FDIC also said about $60 billion in loans will remain in receivership.
— Christine Wang
UBS buys Credit Suisse in $3.2 billion takeover
UBS finalized an agreement to buy its rival Credit Suisse for $3.2 billion. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector.
Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Despite subsequent measures from Credit Suisse and Swiss regulators to calm investors' fears — including a loan of up to 50 billion Swiss francs ($54 billion) — shares plunged 25.5% by the end of the week.
Under the deal, Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares. The combined bank will have $5 trillion of invested assets, according to UBS.
— Hakyung Kim
Warren Buffett in talks with Biden administration regarding banking crisis
Berkshire Hathaway's Warren Buffett has been in talks with senior Biden administration officials in recent days regarding the crisis in the banking sector, according to a report from Reuters. The billionaire investor has been a longtime investor in the financial sector.
The details of the discussions have not been disclosed. The White House and U.S. Treasury declined to comment on the talks, according to Reuters.
— Hakyung Kim
Stock futures open higher
U.S. stock futures opened higher on Sunday night.
Dow Jones Industrial Average futures rose by 65 points, or 0.2%. S&P 500 futures gained 0.3% and Nasdaq-100 futures climbed 0.4%.
— Hakyung Kim