Investing.com -- Shares in midsize U.S. lenders surged on Friday, rebounding after falling steeply in the previous session due to increasing concerns over the health of the sector.
Beverly Hills-based PacWest (NASDAQ:PACW) jumped by more than 59%, paring back some of its 69% slump in the prior four trading days. The bank has said that it is exploring its strategic options, which reports suggest could include a potential sale.
Western Alliance (NYSE:WAL) also gained nearly 30%. The stock dropped 38% on Thursday despite the Arizona-based bank releasing data showing that its deposits have ticked up since the end of March. The group had previously denied a report that it was also mulling over a possible sale.
The KBW Regional Bank index, which aims to reflect the performance of these lenders and their rivals, grew by more than 3%, although it remains lower by over 27% this year. Pressure on these companies, which was sparked by the collapse of Silicon Valley Bank in March, intensified earlier this week when JPMorgan (NYSE:JPM) stepped in to rescue ailing peer First Republic.
The moves come as investors attempt to gauge the outlook for the U.S. economy in the wake of a stronger-than-expected monthly jobs report. Analysts are trying to discern what the data could mean for both a potential U.S. recession and a possible pause in the Federal Reserve's recent interest rate hiking campaign.