Wall Street buoyed by Treasury Secretary's remarks

US stock indices rose on Tuesday as the banking sector rebounded following US Treasury Secretary Janet Yellen's remarks. 

Affirming Support

The First Republic bank's stock spiked 25% as the banking sector overall rebounded, following Yellen's remarks that the US government is ready to provide more guarantees for deposits if the banking crisis deteriorated. 

Investors were soothed after JPMorgan Chase started providing advise for First Republic about strategic alternatives. 

Eyes on Fed

Fed Chair Jerome Powell welcomed UBS's acquisition of Credit Suisse for 3 billion francs, in a deal to aims to restore stability to the banking sector.

After several days of the crisis, the Swiss National Bank intervened to offer liquidity of up to 50 billion francs to support Credit Suisse, which entered into intense negotiations with its main Swiss competitor UBS that ended in the acquisition deal.

The Fed is meeting this week to decide on policies, with most analysts expecting a 0.25% rate hike, but the Fed might surprise us and hold rates flat to calm the markets. 

Dow Jones rose 0.5%, or 148 points to 32,392 as of 15:57 GMT, while S&P 500 rose 0.6%, or 23 points to 3,974, as NASDAQ rallied 0.7%, or 82 points to 11,757.