Major US stock indexes rose on Monday, with banking stocks getting broad support from news of First Citizens Bancshares' purchase of Silicon Valley Bank (SVB).
The SPDR S&P Regional Banking ETF jumped more than 3%, with First Republic and PacWest among the top performers.
Shares of First Republic rose 13%, while PacWest Bancorp and Western Alliance gained 2.5% and 5.5%, respectively.
First Citizens BancShares saw a 40% jump in its shares after announcing the acquisition of about $72 billion of SVB's assets at a $16.5 billion discount.
Also, Deutsche Bank, which suffered heavy losses last week, saw a 3.6% gain in US-listed shares.
The Dow Jones Industrial closed positive, increasing 0.60% to 32,432.09. While the S&P 500 gained 0.17% at 3,977.54 and the Nasdaq lost 0.74% at 12,673.07.
The US30 index was little changed at around 32,464 during the Asian trading session.
The authorities' ability to take swift action in response to bank failures and market turmoil has helped calm investors.
However, the situation is seen as still uncertain causing the market to be more cautious and expect stability to return in the near future.
Meanwhile, Alphabet, Meta and Microsoft were among the biggest losers on the Nasdaq due to the sell-off in the shares of mega-cap companies (market cap over $200 billion).
