Global markets update: US stocks end slightly lower after First Republic-JPMorgan Chase deal
US stocks ended slightly lower on Monday after US regulators seized First Republic Bank.
The S&P 500 lost 2.15 points, or 0.05%, at 4,167.33 points. The Dow Jones Industrial Average slipped 50.42 points, or 0.15%, at 34,047.74. The Nasdaq Composite fell 14.83 points, or 0.12%, at 12,211.75.
US regulators announced the seizure of First Republic Bank on Monday and that it had been sold to JPMorgan Chase.
Shares of JPMorgan Chase closed 2.16% higher at $141.20.
The acquisition of First Republic came after the collapse of Silicon Valley Bank (SVB) and Signature Bank in March.
Investors are closely eyeing the US Federal Reserve’s next interest rate decision this week along with key data such as employment numbers.
The US central bank is widely expected to raise its benchmark lending rate for a tenth time.
US treasury yields gained on expectations of rate hike by the US Fed.
The yield on the 10-year treasury rose to 3.56% from 3.43% late Friday. The yield on the 2-year treasury rose to 4.12% from 4.02%.
A report by Institute for Supply Management (ISM) on Monday showed that US manufacturing contracted for sixth straight month in April, but pulled off a three-year low as new orders improved slightly and employment rebounded.
The ISM said that its manufacturing PMI rose to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020. Canada
Canadian stocks fell on Monday, led by energy, real estate and technology shares.
The Toronto Stock Exchange’s S&P/TSX composite index was down 21.44 points, or 0.1%, at 20,615.10.
In Europe, most markets were closed on Monday for public holiday.
Asia
Japan’s Nikkei 225 rose 0.9% at 29,123.18.
Hong Kong and Shanghai stock markets were closed for holiday.
Australia’s S&P/ASX 200 index ended 0.4% higher at 7,334.60-points. New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to finish at 12,002.97 points.
Oil prices
Oil prices dropped on Monday after data from China reignited concerns about recovery in demand. West Texas Intermediate crude fell 1.1% to $75.91 a barrel.
Bullion
Gold futures fell 0.5% to $1,989.10 an ounce.
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