After days marked by bank chaos, plunging stocks, and extraordinary government intervention, the mood on Wall Street was more upbeat on Tuesday.
Why? Emergency government measures to support deposits and provide lending facilities for banks in need of cash have worked, at least for now.
No banks failed on Monday, although there were concerns that the turmoil from the collapse of Silicon Valley Bank would spread, causing losses for indigenous banks in the same position. Shares of those banks, including First Republic, rebounded sharply on Tuesday after a brutal sell-off on Friday and Monday.
