Dow, S&P 500 Up as SVB Deal Lifts Bank Shares

The Dow and S&P 500 ended higher Monday as a deal for Silicon Valley Bank’s assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq.

The S&P 500 banks index was up sharply, while the KBW regional banking index was also higher.

JPMorgan Chase & Co. and Bank of America were among stocks that gave the S&P 500 its biggest boost Monday.

Shares of First Citizens BancShares Inc. shot up after it said it would acquire the deposits and loans of Silicon Valley Bank, which failed earlier this month in the largest bank collapse since the 2008 financial crisis.

Also, shares of First Republic Bank were up after Bloomberg reported U.S. authorities were considering more support for banks, which could give the struggling First Republic more time to shore up its balance sheet.

Tech-related growth shares were lower, weighing on the Nasdaq.

Growth stocks have “had a very strong quarter growth stocks, so there may be some profit-taking as we head into the end of the quarter,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

Unofficially, the Dow Jones Industrial Average rose 195.08 points, or 0.61%, to 32,432.61, the S&P 500 gained 6.76 points, or 0.17%, to 3,977.75 and the Nasdaq Composite dropped 55.12 points, or 0.47%, to 11,768.84.

Shares of Apple were down. The S&P 500 technology index is up sharply for the quarter so far.

Crypto shares were also down Monday after the Commodity Futures Trading Commission said crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the CFTC for operating an “illegal” exchange and a “sham” compliance program.

Among other stock gainers, Walt Disney shares were up after the company began 7,000 in layoffs announced earlier this year.