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- US stocks were mixed as traders assess the impact of UBS' takeover of Credit Suisse.
- First Republic Bank fell 16% as S&P Global cut its credit rating yet again.
- Morgan Stanley's Mike Wilson said bank turmoil marks the start of a "vicious" end to the bear market.
US stocks were mostly higher on Monday following a takeover deal of Credit Suisse by UBS over the weekend in an effort to calm concerns of a global banking crisis.
On Sunday, UBS bought its smaller rival for $3.25 billion at the urging of regulators eager to shore up confidence in the country's banking system.
"With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation," the Swiss National Bank said in a statement published Sunday afternoon.
UBS stock was up 8% in the US, while Credit Suisse's US-listed shares dropped by 50% in morning trades.
In the US, shares of regional banks parred some losses as traders assessed contagion concerns after the collapse of Silicon Valley Bank earlier this month. First Republic Bank plunged 16% after the opening bell as S&P Global cut its credit rating yet again.
Mike Wilson, a top strategist at Morgan Stanley, said the failure in the banking sector markets the start of a "vicious" end to the bear market for stocks.
"This is exactly how bear markets end — an unforeseen catalyst that is obvious in hindsight forces market participants to acknowledge what has been right in front of them the entire time," Wilson wrote in a note to clients.
Here's where US indexes stood shortly after 9:30 a.m. on Monday:
- S&P 500: 3,926.14, up 0.24%
- Dow Jones Industrial Average: 32,053.26, up 0.6% (191.28 points)
- Nasdaq Composite: 11,589.39, down 0.34%
Here's what else is happening today:
UBS is set to acquire Credit Suisse for $3.2 billion, but deal could make the banking crisis worse.
- Here are the biggest winners and losers of the historic Credit Suisse and UBS takeover deal.
Wall Street's most famous trader told Insider what it was like at the New York Stock Exchange the day Silicon Valley Bank collapsed,
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 0.12% to $66.66 per barrel. Brent crude, oil's international benchmark, dropped 0.3% to $72.80.
- Gold rose 0.6% to $1,985.60 per ounce.
- The yield on the 10-year Treasury ticked up three basis points to 3.43%.
- Bitcoin rose 3.16% to $26,651, while ether jumped 1.86% to $1,744.