S&P 500 rose 3.5% in March despite multiple regional bank failures

U.S. equities generally logged increases in March, with gains for information technology and communication services stocks offsetting turmoil in the banking sector.

The S&P 500 rose 3.5%, finishing the month at 4,109.31. The Dow Jones Industrial Average logged a smaller 1.9% rise.

Smaller-cap stocks, however, fared less well, as the Russell 2000 was down 5.0% for the month.

Sector performance

The S&P 500 Information Technology and S&P 500 Communication Services indexes led the way during March, up 10.9% and 10.4% respectively.

The S&P 500 Utilities index was next with an increase of 4.6%.

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At the other end of the spectrum, the S&P 500 Financials index fell 9.7% during the month, as several major bank failures placed heightened scrutiny on the sector.

The first domino fell with Silvergate Capital Corp. announcing a plan to liquidate banking subsidiary Silvergate Bank on March 8. Two days later, the Department of Financial Protection and Innovation, California's financial regulator, took control of Silicon Valley Bank, marking the second-largest bank failure in history. Then, the New York Department of Financial Services took over Signature Bank on March 12.

The banking downturn also rippled through the real estate sector, with the S&P 500 Real Estate index falling 2.1% for the month.

Largest gains, drops in March

Four of the top five S&P 500 stocks came from the information technology sector.

Intel Corp. logged the largest share-price increase for the month, up 31.0%.

First Solar Inc. and Advanced Micro Devices Inc. placed second and third, up 28.6% and 24.7%, respectively.

Unsurprisingly, the financials sector dominated the bottom-performing stocks for the month.

Share prices for First Republic Bank plummeted amid the collapse of Silicon Valley Bank, as investors feared that the bank may face similar risks. First Republic Bank closed the month down 88.6%.

Share prices for Zions Bancorp. NA and Comerica Inc. dove 40.9% and 38.1%, respectively.