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Concern over the fate of the regional lenders was further relieved by fresh data on Friday that showed a robust labor market, with the pace of new hiring in April coming in stronger than expected and workers still achieving elevated wage gains.
Despite the strong numbers for April, downward revisions to data from earlier months show the longer-term trend of a slowing labor market persisted, and investors still expect Fed policymakers to pause on raising interest rates when they next meet in June.
Elsewhere, oil prices rose, often a reflection of a brighter outlook for the global economy. They, too, bounced higher following a sharp decline earlier in the week.
A further tailwind for the market came from Apple, which reported better-than-expected profits for the first quarter, helping push its share price nearly 5 percent higher on Friday. Because of the size of the tech behemoth, its moves have more of an effect on the S&P 500 than any company in the index.
Jerome H. Powell, the Federal Reserve chair, has said that it is possible to slow the economy enough to stem inflation without tipping it into recession. Arguably, Friday’s employment data supports that notion of a so-called soft landing.
Nonetheless, some investors remain on edge, even after Friday’s bounce. The strong data nudged higher the possibility of a rate increase in June.
The two-year Treasury yield, which is sensitive to changing interest-rate expectations, also rose, climbing 0.16 percentage points to 3.9 percent — a big move for an asset that typically changes by hundredths of a percentage point each day, and a sign that investors think interest rates could stay higher for longer.
“The market seems vulnerable to a shock,” said Mr. Peron. “We are going to be cautious until we get through a pause.”
Jeanna Smialek contributed reporting.
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