Last Update: May 02, 2023, 02:42 AM IST
Wall Street stocks edged lower on Monday as the market traded cautiously ahead of a Federal Reserve decision after JPMorgan Chase announced its acquisition of the troubled First Republic Bank.
After a choppy session, all three major indexes ended in the red at the start of a news-jammed week, including results from Apple and a report on April employment data.
The Dow Jones Industrial Average closed down 0.1 percent at 34,051.70.
The broad-based S&P 500 ended less than 0.1 percent at 4,167.87, while the tech-rich Nasdaq Composite Index also declined 0.1 percent to 12,212.60.
The JPMorgan deal came after federal authorities placed First Republic in receivership, resolving the last major problem bank from recent troubles.
Under the agreement, JPMorgan, the largest bank in the United States, will assume all of First Republic’s deposits as well as “virtually” all of its assets, according to a statement from the Federal Deposit Insurance Corporation.
“Wall Street is breathing a sigh of relief,” said Edward Moya of Oanda, adding that “it’s starting to look like some of the major banking issues won’t lead to a banking crisis.”
But Moya cautioned that the Fed’s policy decision on Wednesday could disappoint investors who are expecting a rate hike after May.
“The Fed may stop signaling that they are prepared to keep rates steady after another hike,” Moya said.
A reading by the Institute for Supply Management showed US manufacturing activity contracted for the fifth month in a row.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
