NEW YORK (Reuters) – The New York Stock Exchange ended higher on Monday, comforted by the takeover of Credit Suisse by its rival UBS which seems to ward off the risk of banking contagion and while the Fed could decide on Wednesday to slow the rise in rates .

The Dow Jones Industrial Average gained 1.20%, or 382.6 points, to 32,244.58 points.

The broader S&P-500 gained 34.93 points, or 0.89%, to 3,951.57 points.

The Nasdaq Composite advanced for its part by 45.03 points (0.39%) to 11,675.54 points.

The New York Stock Exchange has entered a key week for US monetary policy, with the Federal Reserve (Fed) meeting scheduled for Wednesday, and all eyes are on a possible status quo on interest rates as several banks Americans have been trapped by accelerating borrowing costs to rein in inflation.

Initially focused on regional players Silicon Valley Bank and Signature Bank, worries about the banking sector spread to Europe last week after the giant Credit Suisse failed to win the support of its largest shareholder, dragging in its fall the European banks.

To avoid further turbulence, UBS agreed on Sunday to buy the Zurich-based bank for 3.04 billion euros, bringing some semblance of calm to the markets after some hesitation at the start of the session.

Credit Suisse’s New York-listed stock fell 53% as its merger with UBS sparked concerns among investors about the stability of the banking system.

Struggling regional bank First Republic Bank, fell 47% after S&P Global downgraded its credit rating to junk grade on the belief that the recent injection of $30 billion in deposits by 11 major banks may not solve its liquidity problems.

“There is more good news than bad news on the banking front,” however, said Art Hogan, chief market strategist at B. Riley Wealth, as all major sectors of the S&P-500 ended in positive territory.

(Report by Caroline Valetkevith, Tangi Salaün)

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