The broader equity market and risk aversion is getting a lift from US regional banks. Shares of Western Alliance Bancorp (WAL) are up 13% after the company reported that deposits have grown by $2 billion this quarter (up to May 12).
Earlier this week, shares of PacWest Bancorp were beaten up on reports of 10% deposit flight but this shows that money fleeing isn’t widespread.
The KRE regional bank ETF is up 1.5%.
The boost from that has helped to counteract a warning from Target that consumer spending is slowing as it cut its Q2 profit view. The company said sales slowed in March and decelerated further in April. However the company maintained full year gudiance and shares are up 1.5%.