US stock indices rose on Monday as calm spread following UBS's acquisition of Swiss bank Credit Suisse.
Credit Suisse - UBS
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.
Yesterday, it was announced that UBS will take over Credit Suisse for 3 billion francs, with UBS carrying losses of over 5 billion dollars
The SNB lauded the deal, and noted both banks can now take up liquidity of almost 100 billion francs from the central bank.
However in the US, the First Republic bank continued to bleed with shares down 12.16% to $20.23, after already losing 80% of its value last week, while Credit Suisse bank slumped nearly 5% at the New York Exchange to $1.0299.
The Fed
The Federal Reserve is convening this week to discuss policies and decide on interest rates and the path forward.
While most analysts expect the Fed to raise interest rates by 25 basis points, some expect the bank to hold current rates unchanged due to the ongoing turmoil.
On trading, Dow Jones rose 1.1%, or 336 points to 32,197, while S&P 500 climbed 0.8%, or 31 points to 3,948, as NASDAQ added 0.3%, or 33 points to 11,663.