Srinagar, March 15 -- New York, March 14 () After a few days of panic over the health of the US banking system, Wall Street appeared to take a deep breath Tuesday, media reports said.

Regional bank stocks rebounded Tuesday morning after being pummelled in a Monday selloff that was fuelled by a mix of contagion fears and a pile-on of short-sellers who profit when stocks lose value, CNN reported.

Even after the federal government's intervention on Sunday to backstop deposits in two failed lenders, Silicon Valley Bank and Signature Bank, Wall Street had remained wary of smaller and midsize banks that are seen as having similar risks.

The mood was calmer, even jubilant, on Tuesday, partly thanks to the latest inflation report, which showed...