The government-brokered purchases of First Republic, Signature and Silicon Valley banks have created a vicious cycle in which troubled lenders need to fail -- and get government assistance -- before buyers will step up, industry sources say.

(Reuters) -A government report Friday showing the U.S. labor market is still running strong appeared to ratify the Federal Reserve's decision this week to tighten monetary policy, but traders continued to bet the central bank's next move will be an interest-rate cut.

HOUSTON (Reuters) -Oil prices rose on Friday but fell for the third straight week after a sharp fall earlier this week ahead of benchmark interest rate rises and on concern that the U.S. banking crisis will slow the economy and sap fuel demand.

LONDON (Reuters) -Oil prices jumped on Friday but were set for a third straight week of losses after dramatic drops on fears over the economic impact of interest rate hikes and slowing Chinese demand.

A critical flow of data heading to the Federal Reserve's June meeting, and a possible rate hike pause, began Friday with a stronger-than-anticipated jobs report showing U.S. payrolls and wage growth remain resilient.

Traders of futures contracts tied to the Federal Reserve's policy rate pared bets Friday that the U.S. central bank will soon turn to cutting interest rates, after the government reported employers added more jobs than expected in April and the unemployment rate fell.