Bank stocks soared on news of the Federal Reserve Board's latest cut in the discount rate to 3% from 3.5%, but the stock market overall slumped on investor worries about weak employment data.

California banks grabbed the biggest gains. BankAmerica Corp. rose $1.625, to $146.375, and Wells Fargo & Co. climbed $1.625, to $75.75, while First Interstate Bancorp added $1, reaching $42.375.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.