Wall Street ends higher for 2nd straight winning week

A late-afternoon turnaround on Wall Street left stocks higher Friday as the market shook off a weak start amid worries about banks on both sides of the Atlantic.

The S&P 500 rose 0.6% after slipping for most of the morning. The benchmark index marked its second straight weekly gain. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq composite ended 0.3% higher.

The upbeat close to the week came as markets have been turbulent on worries that banks are weakening under the pressure of much higher interest rates. That's led to rising concerns about a possible recession and heavy uncertainty about what the Federal Reserve and other central banks will do with interest rates going forward.

“There are concerns out there about, obviously, a more severe bank crisis, both domestically and in Europe, and yet somehow markets are looking past that,” said Randy Frederick, managing director of trading & derivatives at Charles Schwab.

On Friday, much of the focus was on Deutsche Bank, whose stock tumbled 8.5% in Germany. Earlier this month, shares of and faith in Swiss bank Credit Suisse fell so much that regulators brokered a takeover of it by rival UBS.

Credit Suisse faced a relatively unique set of longstanding troubles. But the second- and third-largest U.S. bank failures in history earlier this month have cast a harsher spotlight across the entire banking industry.

Other big European banks also fell Friday, including a 5.5% drop for Germany's Commerzbank, a 5.3% fall for France's BNP Paribas and a 3.5% loss for UBS.

Bank stocks ended mixed on Wall Street. JPMorgan Chase fell 1.5%, while Bank of America rose 0.6%.

In the U.S., the hunt by investors has primarily been for banks that could face a debilitating exodus of customers, similar to what helped cause the failures of Silicon Valley Bank and Signature Bank.

Investors have zeroed in on smaller and midsized banks, the ones below in size of the “too-big-to-fail” banks and seen as greater risks.

First Republic Bank closed 1.4% lower. It's down 90% for the year.

Treasury Secretary Janet Yellen has said that in cases where the government sees a risk to the overall system, it will guarantee deposits for bank customers, even those with more than the $250,000 insured by the Federal Deposit Insurance Corp. That's what regulators did for both Silicon Valley Bank and Signature Bank.

But Yellen this week also stopped short of a blanket guarantee for all depositors at all banks.

Cash-short banks were still lining up this week to borrow money from the Fed. The Fed said Thursday that emergency lending to banks fell slightly in the past week — to $164 billion — but remained high.

On Friday, yields fell further. The 10-year yield, which helps set rates for mortgages and other loans, fell to 3.38% from 3.42% late Thursday. It was above 4% earlier this month.

All told, the S&P 500 rose 22.27 points to 3,970.99. The Dow added 132.28 points to 32,237.53. The Nasdaq gained 36.56 points to close at 11,823.96.

Small company stocks outgained the broader market. The Russell 2000 index rose 14.63 points, or 0.9%, to 1,734.92.