Shares in a group of regional banks, which came under heavy pressure this week to raise fears that a banking crisis is spreading, rose on Friday, at least partly easing those fears.

The recovery came as the market was also supported by hiring data, which was seen as strong enough to allay recession fears without prompting the Fed to further tighten the screws on the economy.

PacWest soared more than 80 percent after falling more than 50 percent on Thursday. The share price of Western Alliance rose by almost 50 percent, also partially offsetting the fall the day before.

The relief rally helped lift the overall market, with the S&P 500 up 1.9%, its first day of gains in May.

“We thought the banks had been unfairly penalized over the past week and even earlier,” said Matt Peron, research director at Janus Henderson management company. “The rally makes sense because they were oversold.”

However, profits were not enough to reverse another tough week for the country’s mid-sized banks. The takeover and sale of First Republic to JPMorgan Chase on Monday was unveiled by Jamie Dimon, chief executive of JPMorgan, ending the crisis that began in March with the collapse of Silicon Valley Bank.

However, Mr. Dimon added that “there may be another smaller” bank that could run into problems. Shortly thereafter, a new bout of pressure brought down the shares of smaller lenders such as PacWest and Western Alliance, which were trying to convince investors that their deposit base was stable and that market movements were not related to their financial condition.

Even with Friday’s spike, PacWest shares remained set for the end of the week, losing almost half of their market value. Western Alliance finished the week about a quarter lower than it started the week. The S&P 500 ended the week down 0.8%.

After trading closed on Friday, the Federal Reserve released data showing that US commercial bank deposits declined slightly in the week ended April 26, falling to $17.17 trillion from $17.18 trillion the week before. However, in domestically registered banks, they rose to $15.96 trillion from $15.94 trillion earlier. In any case, the data showed that deposits have stabilized after a much larger decline in March and early April.

Worries about the fate of regional lenders were further eased by fresh data on Friday, which showed a resilient labor market, with April’s hiring rate higher than expected and workers still pushing higher wage growth.

Despite the strong numbers for April, downward revisions to previous months’ data show that the long-term slowdown in the labor market continues, and investors still expect Fed policymakers to halt interest rate hikes at the next meeting in June.

Elsewhere, oil prices rose, often reflecting a brighter outlook for the global economy. They also rose after a sharp decline earlier in the week.

Another tailwind for the market came from Apple, which reported higher-than-expected first-quarter earnings, which helped lift its share price nearly 5% on Friday. Because of the tech giant’s size, its actions have more of an impact on the S&P 500 than any company in the index.

Jerome H. Powell, chairman of the Federal Reserve, said it was possible to slow the economy enough to stop inflation without pushing it into recession. Perhaps Friday’s employment data confirms the view of the so-called “soft landing”.

However, some investors remain on edge even after Friday’s surge. Strong data increased the likelihood of a rate hike in June.

The 2-year Treasury yield, which is sensitive to changes in 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 every day and a sign that Investors think that interest rates can stay high longer.

“The market seems vulnerable to a shock,” Mr. Perón said. “We will be careful until we overcome the pause.”

Zhanna Smyalek made a report.