Turmoil in the banking sector seems to be contained.

After four days of selloffs, North American stock markets soared on Thursday as the crisis created by Credit Suisse bank and the US regional banks like Silicon Valley Bank is being handled by authorities. S&P 500 and Nasdaq added 1.76% and 2.48% and Canada’s S&P/TSX Composite advanced 0.79% to turn positive for the year.

After the SVB and other regional banks in the US faced with liquidity crisis and failed to provide depositors with their money, the regulators, Federal Deposit Insurance Corporation, had to move in and guarantee depositors' money to stop the ripple effect to the whole US economy. The cracks in the banking system are appearing as an impact of higher rates that are pressuring the banking sector.

Soon after, the share prices of the giant Swiss bank, Credit Suisse, which is down 72% in one year, plunged another 30% in one day, causing panic chaos that echoed through financial markets all over the world.

Many fear that a similar scenario as the 2008 financial crisis could be the case but the banking system and regulars are considerably more robust today. However, markets stay on edge to see if there will be other cracks that may cause the markets to collapse and maybe push the Central banks to stop their rate hikes or even lower the record-high interest rates.