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Stocks Extend Bounce, Bonds Drop as Calm Returns: Markets Wrap

(Bloomberg) A sense of calm continued to prevail in global markets, with a rebound in banks and assurances from authorities easing fears that the recent tumult would lead to a full-blown crisis. Stocks climbed across the board and bonds tumbled as the coordinated actions to resolve the banking turmoil have restored a semblance of order in the financial world at least for now. Traders again expect the Federal Reserve will raise rates by a quarter percentage point Wednesday, with the central bank forging ahead with its battle against inflation amid growing risks that more tightening could tip the economy into a recession. As demand for haven assets waned, the S&P 500 approached 4,000 and traded above its key 200-day moving average, a threshold seen by many analysts as heralding more gains. First Republic Bank snapped back from a record low, soaring about 40% as JPMorgan Chase & Co. mapped out a new plan to help the firm. A gauge of US financial heavyweights jumped 5%. UBS Group AG wa ....

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