U.S. stocks were higher at Thursday’s close as investor confidence grew following an announcement from U.S. Treasury Secretary Janet Yellen assuring that measures will be taken to ensure that Americans’ deposits are kept safe amid the ongoing banking crisis.
Central banks across the globe have implemented interest rate hikes, thereby placing further stress on the struggling banking sector. The U.S. started to feel the bite of the banking crisis following the collapse of Silicon Valley Bank as well as Signature Bank.
Yellen’s comments helped to ease investors’ concerns, particularly after her testimony before congress in which she ruled out blanket protection for all deposits. Investor confidence was not assisted by the Federal Reserve’s 25 basis point interest rate hike.
The S&P 500 rose by 11.12 points, or 0.28%, to 3,948.09 points at Thursday’s close, while the Nasdaq Composite gained 116.85 points or 1.00%, ending the day at 11,786.81. The Dow Jones Industrial Average gained 66.08 points, or 0.21%, ending at 32,096.19 at Thursday’s close.