The Dow Jones Industrial Average climbed Monday as investors bet the government seizure of First Republic over the weekend and subsequent sale to JPMorgan Chase had sufficiently contained the regional banking crisis that has worried markets since March.
The blue-chip index increased 65.42 points to begin the session out at 34,163.58.
The S&P 500 collected 2.04 points to 4,171.52.
The NASDAQ Composite fell 19.56 points to 12,207.02.
The Dow is up more than 7% since hitting a closing low for that month, and the S&P 500 has climbed 8%. The Nasdaq Composite is up 9%.
PMorgan Chase shares rose 2.6% on the news of its deal with First Republic. The big bank has acquired all of troubled lender First Republic's deposits and a “substantial majority of assets.”
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PMorgan Chase CEO Jamie Dimon said that the deal resolves much of the fallout in the banking sector that has started since the sudden collapse of Silicon Valley Bank in March.
Zions Bancorp shares fell 0.7%. Meanwhile, Western Alliance and PacWest shares buck the trend, gaining 2.3% and 2.1%, respectively.
First Republic reported last week that deposits tumbled more than 40% in the first quarter, triggering further declines in the already struggling stock. Shares have cratered 97% since the start of the year. The stock is halted for trading as of Monday morning.
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nvestors are looking to several big-name companies releasing their earnings this week. Tech giant Apple and other headliners Qualcomm and AMD are scheduled to announce their quarterly results. Meanwhile, the markets will be closely watching the outcome Federal Reserve's May meeting on Wednesday.
Prices for the 10-year Treasury gained ground, lowering yields to 3.52% from Friday's 3.43%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.06 to $75.72 U.S. a barrel.
Gold prices dipped $1.60 to $1,997.50 U.S. an ounce.