The two banks were forced together over the weekend by Swiss officials in a shotgun marriage that stabilised the teetering Credit Suisse but wiped out $17bn of its bonds, upending the normal priority of investors. The Swiss government has come under fire from bondholders and international regulators for its handling of the $3.2bn rescue-takeover of Credit Suisse by UBS. The Nasdaq Composite gained 0.39 per cent and closed at 11,675.54. Meanwhile, the S&P 500 rose 0.89 per cent to end the session at 3,951.57. The Dow Jones Industrial Average jumped 382.60 points, or 1.20 per cent, to close at 32,244.58. The other 27 per cent is in the no-hike camp, anticipating that Chairman Jerome Powell may start to ease his aggressive tightening campaign that began in March 2022, in the face of the emerging financial contagion The instability in the financial sector over the past two weeks raises the stakes for the Federal Reserve’s interest rate decision on Wednesday.Īs of Monday, there is about a 73 per cent chance of a quarter-point increase. The gains followed a forced takeover of Credit Suisse by UBS engineered by the Swiss government. Stocks closed higher on Monday as traders grew hopeful that a crisis in the banking sector may be easing.
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