Wall Street near flat after First Republic news, awaiting Fed
Timilehin Adejumobi
1 min read
U.S. stocks ended little changed on Monday as investors took in the weekend auction of First Republic Bank and braced for this week’s expected interest rate hike from the Federal Reserve.
The KBW regional banking index dropped 2.7%, while shares of JPMorgan Chase & Co, which won the auction of failed lender First Republic, rose 2.1%.
JPMorgan will pay the U.S. Federal Deposit Insurance Corp $10.6 billion to take control of most of the regional bank’s assets.
Investors have been on edge about the banking system’s health following the collapse of two other regional banks in March.
“Hopefully this is sort of the last of the banking crisis, but something else might surface at some point,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Market watchers also digested the latest economic news, which suggested to some that the Fed may need to stick to its tightening cycle for the near term. The Institute for Supply Management (ISM) said on Monday its manufacturing PMI rose last month from March.
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