US STOCKS-S&P 500 ends near flat; hedge fund default concerns hit banks

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* Boeing rises on Southwest order for 737 MAX jets
* Bank stocks fall after default by fund manager

(Updates to close)
By Caroline Valetkevitch
NEW YORK, March 29 (Reuters) - The S&P 500 ended nearly flat
on Monday, with bank shares falling amid warnings of potential
losses from a hedge fund's default on margin calls, while
optimism over the economy limited the day's declines.
Shares of planemaker Boeing Co BA.N rose after the company
reached a deal with U.S. budget carrier Southwest Airlines Co
LUV.N for a variant of the 737 MAX aircraft. Nomura 8604.T and Credit Suisse CSGN.S are facing
billions of dollars in losses after a U.S. hedge fund, named by
sources as Archegos Capital, defaulted on margin calls, putting
investors on edge about who else might have been caught out.
Shares of big U.S. banks and even regional banks fell.
"There's still chatter as to whether or not, and which,
American banks may be affected. That is a question that's
lurking. But so far the market has taken (the news) in stride
essentially," said Quincy Krosby, chief market strategist at
Prudential Financial in Newark, New Jersey.
Optimism about speedy vaccinations and record stimulus,
which drove the Dow and the S&P 500 to record closing highs last
week, helped keep a floor in the market along with upbeat
estimates for upcoming earnings, she said.
Unofficially, the Dow Jones Industrial Average .DJI rose
104.61 points, or 0.32%, to 33,177.49, the S&P 500 .SPX lost
3.25 points, or 0.08%, to 3,971.29 and the Nasdaq Composite
.IXIC dropped 79.08 points, or 0.6%, to 13,059.65.
The Nasdaq was on track to post its first monthly decline in
five months.
Investors may also be adjusting their holdings for
quarter-end "window dressing," Krosby said.