Major US stock indices surged today, driven by increased confidence in the banking system and a boost in tech shares due to lower interest rates. The reassurance in the banking sector began when the Swiss National Bank announced a 50 billion Swiss franc support package for Credit Suisse. Later in the US session, after Republic Bank's shares opened sharply lower on concerns of a bank run, leading banks stepped in and pledged to provide $30 billion in deposits to the bank.

Subsequently, the Federal Reserve stated that it would offer funds to eligible banks through the discount window if they faced any shortfalls. This intervention helped Republic Bank's shares rebound from a low of $19.80 to a high of $40. The stock closed at $34.38, up $3.22 or 10.33%. This series of supportive measures bolstered the overall market, leading to the impressive gains seen in today's session.

The surge in tech shares was fueled by expectations that the Federal Reserve is nearing the end of its rate tightening cycle. Although the Fed is likely to implement a 25 basis point hike next week, interest rates remain significantly lower than the highs seen last week. The two-year yield is trading at 4.161%, down from 5.05% last week, while the ten-year yield has dropped to 3.577% from 4.085%.

Tech giants like Nvidia and Microsoft experienced gains of 5.42% and 4.05%, respectively, contributing to the robust performance of the tech sector. The final numbers for the day are as follows:

  • Dow Industrial Average: up 371.98 points or 1.17% at 32,246.54
  • S&P Index: up 68.73 points or 1.76% at 3,960.29
  • NASDAQ Index: up 283.23 points or 2.48% at 11,717.29

For the trading week, the NASDAQ is now up 5.19%, the S&P has risen by 2.56%, and the Dow Industrial Average has increased by 1.06%.