U.S. stocks rallied Tuesday as investors bet the risk of contagion following the closure of Silicon Valley Bank and Signature Bank had been contained.

The Dow Jones Industrial Average gained 422 points, or 1.3%. The S&P 500 added 1.9%, while the Nasdaq Composite climbed 2.2%.

Bank stocks rebounded after getting pummeled during Monday’s trading session as the backstop of Silicon Valley Bank failed to buoy investor optimism. The SPDR S&P Regional Banking ETF (KRE) rose more than 9%. Shares of First Republic Bank popped more than 55% after closing down nearly 62% on Monday. KeyCorp shares 16% in a relief bounce following a 27% decline.

“Considering how much they’ve gotten slammed, there are no more bank runs that we know of and things are calm. I think the government has implicitly guaranteed deposits,” said Peter Boockvar, chief investment officer at Bleakley Financial Group. “Considering how much they’ve gotten destroyed, they’re due for a bounce back. The challenge for banks in my opinion is more of what the profit outlook is rather than viability.”

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