Wall Street fell after First Republic shutdown but JPMorgan shares rose

Wall Street fell after First Republic shutdown but JPMorgan shares rose

Wall Street fell, while stocks of JPMorgan rose after the purchase of most of the assets of First Republic Bankwhile investors refrained from placing big bets ahead of the Federal Reserve’s policy decision this week.

The Dow Jones Industrial Average lost 0.2% to 34,051.70, the S&P 500 fell 0.1% to 4,167.87, and the Nasdaq Composite fell 0.1% to 12,212.60.

Shares of JPMorgan Chase & Co rose 2.2% on Monday, to a near two-month high, after the deal was announced earlier in the day.

The bailout comes less than two months after a run on deposits by US lenders Silicon Valley Bank and Signature Bank forced the Federal Reserve to intervene with emergency measures to stabilize markets.

Troubles at First Republic led to a gloomy start to the week, but positive results from Alphabet Inc, Microsoft Corp and Meta Platforms Inc helped the benchmark S&P 500 index post its second straight month of gains on Friday.

What to expect from the markets this week

Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, down from the 5.1% drop expected in early April, according to Refinitiv data. Apple Inc is scheduled to present its results this week.

Investors eagerly await the conclusion of the Federal Reserve’s two-day policy meeting on Wednesday, looking for signs that its aggressive tightening of monetary policy may soon come to an end.

The latest economic data bolstered bets on another 25 basis point interest rate hike, with investors pricing the chances of such a move at 90%.or, according to CME Group’s FedWatch tool.

Data on Monday showed the US manufacturing sector rebounded from a three-year low in April as new orders improved slightly and employment picked up, but activity remained subdued against a backdrop of higher borrowing costs and tightening of the market. credit, increasing the risk of recession this year. Another set of data showed US construction spending rose more than expected in March.

Source: Ambito

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