Shares of banks and other financial institutions rose as volatility in global markets subsided, amid hopes that the Federal Reserve would eventually have leeway for more rate cuts.

One strategist said the rebound from the recent stock market correction may be something more than a "dead-cat bounce."

"So far, we haven't seen the mass erosion of earnings expectations," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "If we do the math and we do get the potential tax cuts at the corporate level," the boost to earnings from the tax cuts could justify valuations otherwise considered elevated, said Joyce.

Berkshire Hathaway increased stakes in five major Japanese trading houses, just weeks after Warren Buffett said the company's stakes in them would likely increase somewhat over time. Swedish fintech Klarna will become the exclusive buy-now-pay-later provider at Walmart in the U.S., replacing rival Affirm.

Berkshire now holds a stake of between 8.5% and 9.8% in the five companies: Itochu, Sumitomo, Marubeni, Mitsubishi and Mitsui & Co. Swiss bank UBS said it will start the most complex part of its Credit Suisse integration in the coming months, amid global trade tensions and Swiss proposals to tighten capital rules.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

March 17, 2025 17:04 ET (21:04 GMT)

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