Wall Street gains ground amid spreading calm about banking sector

US stock indices rose on Thursday following earlier data while concerns about the banking sector fade away as authorities intervene. 

Banking Troubles

Banking shares rebounded today, with the SPDR-S&P regional bank index rising 1%, accumulating 7% of gains since March 23. 

Investors continue to show optimism that the banking crisis is tapering off with the volatility index VIX hitting 19 after scaling 30 earlier this month.

Data

Earlier US data showed the GDP grew 2.6% y/y in the fourth quarter of 2022, down from 3.2% in the third quarter, and missing estimates of 2.7%. 

US unemployment claims rose to 198 thousand in the week ending March 25, above estimates of 196 thousand, and above the previous reading's 191 thousand.

Dow Jones rose 0.3%, or 85 points as of 15:07 GMT to 32,803,while S&P 500 climbed 0.6%, or 23 points to 4,050, as NASDAQ added 0.8%, or 102 points to 12,028.