The Dow Jones Industrial Average rose slightly Monday as regional banks try to regain their footing to start the week.
The 30-stock Dow climbed 60 points, or 0.2%. The S&P 500 gained 0.1%. The Nasdaq Composite fell slightly.
Regional bank stocks rose broadly, with the SPDR S&P Regional Banking ETF (KRE) climbing 2.2%. Shares of PacWest outperformed, surging 28%, after the bank cut its dividend. Big banks Citigroup, Wells Fargo, JPMorgan Chase and Morgan Stanley also rose.
Investors are debating if the banking crisis has finally abated, according to Oanda senior market analyst Edward Moya.
“It looks like Wall Street will try to find out if bank stress is nearing the end,” Moya said. “This week won’t be as busy as last but it will still be important.”
Meanwhile, Berkshire Hathaway Class B shares rose more than 1% after Warren Buffett’s conglomerate reported its first-quarter results. The conglomerate showed operating earnings increase 12% in the first quarter, while its cash hoard topped $130 billion. Buffet personally discussed topics including the latest banking crisis that rocked Wall Street, at Berkshire Hathaway’s annual meeting in Omaha, Nebraska.
Stocks are coming off a volatile week that saw the Dow Jones Industrial Average and S&P 500 notch their worst weekly stretches since March. The losses came despite a late-week rally that saw volatile regional bank stocks jump off their lows.
On the inflation front, investor attention this week turns to April’s consumer price index due out Wednesday, followed by the producer price index on Thursday.
This article was originally published by CNBC.
