US regional banks made an advance on Wall Street on Friday. The shares of the banks experienced a sharp fall a day earlier. There is turmoil in the financial markets due to uncertainty about regional banks such as Western Alliance and PacWest. The sector is under a magnifying glass after the collapse of three other regional banks.
PacWest rose during the day with record steps. At the end of the trading day, the share recorded a whopping 81.7 percent higher. Several times, trading in the stock was stopped by large price fluctuations. Western Alliance also managed to recover from the free fall on Thursday and increased by 49.2 percent. A day earlier, the bank lost another 38.5 percent of its value.
Investors also responded to the US government’s jobs report. It shows that the number of jobs in the world’s largest economy has increased by 253,000. That was better than anticipated. The situation in the labor market plays an important role in the interest rate policy of the Federal Reserve. Strong job growth gives the Fed more room to possibly raise interest rates further and slow down the economy in the fight against inflation.
