Stocks muted as JPMorgan Chase takes over First Republic: Stock market news today

Here's what's moving markets on Monday, May 1, 2023.

·3 min read

U.S. stocks were muted on Monday as Wall Street digested JPMorgan Chase’s takeover of regional lender First Republic Bank.

At the close, the S&P 500 (^GSPC) was little changed, while the Dow Jones Industrial Average (^DJI) slipped by 0.14%. The technology-heavy Nasdaq Composite (^IXIC) dipped by 0.11%.

Regulators seized First Republic (FRC) early on Monday and sold most of the bank's operations to JPMorgan in the largest bank failure since the 2008 financial crisis. JPMorgan Chase CEO Jamie Dimon said that the seizure of First Republic puts to rest a period of panic over the banking system.

"This part of the crisis is over," he told analysts on a Monday conference call.

A number of banks, including JPMorgan and PNC, had submitted bids on Sunday to the Federal Deposit Insurance Corporation to acquire the embattled bank.

Shares JPMorgan Chase & Co. (JPM) rose over 2% on Monday.

In other news, interest rates will be in the spotlight this week as the Federal Reserve's policy-making committee meeting kicks off on May 2. Markets put chances of a quarter-point hike at 86% as of Monday morning.

Additionally, economic data out on Monday showed that factory activity in the U.S. shrank for the sixth consecutive month in April as companies continued to slowdown amid demand weakness. The Institute for Supply Management’s gauge of factory activity climbed to 47.1 from 46.3, and above economists estimates of 46.8 for the month. A reading below 50 indicates that manufacturing in the U.S. is shrinking.

Jobless claims are on deck this week, and the big headliner at the end of the week will be the April jobs report. The economic data is expected to lead to another volatile week for Treasury yields.

On Monday, the yield on the 10-year note rose to 3.59%, while the rate-sensitive two-year note yield increased to 4.12%. On the commodities front, Gold (GC=F) pushes back below $2,000, reversing gains from earlier in the session.

Meanwhile, most of the big tech earnings are now in, and Wall Street is closely watching given how much the industry has bolstered the market this year. The question is will the rally continue. Apple’s quarterly results are next on deck for Thursday.

Also, results from AMD (AMD), Starbucks (SBUX), Ford (F), Pfizer (PFE), and Uber (UBER) will highlight the calendar.

In single-stock moves, shares of NVIDIA Corporation (NVDA) gained more than 4% following reports of Softbank Group Corp.'s chip maker Arm Ltd. filed an application with regulators for an initial public offering. NVIDIA dumped its plans to acquire Arm in 2022 amid regulatory opposition.

Shares of Coinbase Global, Inc. (COIN) sank more than 6% after analysts at Needham cut its price target to $70 a share from $73.

SoFi Technologies, Inc. (SOFI) shares fell more than 12% Monday after the financial-services company topped earnings expectations for its quarter while seeing continued momentum in personal lending.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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