US stocks ended higher on Friday, marking the end of a turbulent week, as Federal Reserve officials calmed investor concerns about a potential liquidity crisis in the banking sector.

While the three major US stock indexes opened sharply lower following a sell-off in European banks, those losses reversed at the close, repeating the intraday roller coaster ride of recent sessions.

All three indexes posted weekly gains after an up-and-down week marked by Fed rate hikes and heightened concerns about the banking system’s health.

Three regional Fed presidents separately said their confidence that the banking system is not facing a liquidity crisis led to Wednesday’s decision to implement a 25 basis point policy rate hike.

But while Fed officials continue to see a strong chance of further rate hikes, financial markets are now leaning towards the possibility of no rate hike after the next policy meeting in May.

The sell-off in European bank shares has raised concerns about potential contagion beyond regional lenders and potentially to larger peers.

Triggering the sell-off was a rise in the cost of insuring Deutsche Bank’s debt, manifested in its credit-default swaps, on the heels of a state-sponsored Credit Suisse takeover that has fuelled the narrative of stress across the industry.

While the S&P Bank Index ended slightly lower, the KBW Regional Bank Index rose 2.9%.

The Dow Jones Industrial Average rose 132.28 points, or 0.41%, to 32,237.53, the S&P 500 gained 22.27 points, or 0.56%, to 3,970.99, and the Nasdaq Composite gained 36.56 points, or 0.31%, to 11,823.96.

Defensive sectors such as utilities and real estate posted the biggest gains in nine of the 11 major S&P 500 sectors. Consumer discretionary and financials were two losers. Deutsche Bank’s US-listed shares fell 3.1%.

Shares of major US banks such as JPMorgan Chase & Co and Wells Fargo pared losses but ended lower, while Bank of America shares rose.

Regional banks PacWest Bancorp and Western Alliance Bancorp rose 3.2% and 5.8%, respectively, while First Republic Bank (FRC.N) fell 1.4%.

Activision Blizzard shares rose 5.9% after Britain’s competition watchdog dropped some competition concerns over the Microsoft-Activision deal. Advancing issues outnumbered decliners by a 1.47-to-1 ratio on the New York Stock Exchange and 1.26 to 1 on Nasdaq.

The S&P 500 posted 4 new 52-week highs and 35 new lows. The Nasdaq Composite posted 34 new highs and 298 new lows. Volume on US exchanges was 11.08 billion shares, compared with the 12.84 billion average for the last 20 sessions.