On Tuesday, the U.S. stock market experienced a significant decline due to the aftermath of First Republic Bank’s (FRC) failure, which continued to impact bank stocks, and the Federal Reserve’s two-day meeting. The S&P 500 (^GSPC) dropped 1.48% during midday trading, while the Dow Jones Industrial Average (^DJI) plummeted over 400 points, or 1.4%. At 12:40 pm ET, the technology-heavy Nasdaq Composite (^IXIC) fell 1.24%.
Additionally, government bonds slumped as the Labor Department released new data indicating that the labor market is continuing to cool. The yield on the 10-year note decreased to 3.4%, and the two-year note yield fell to 3.9%.
Following the regulators’ takeover of First Republic, JPMorgan Chase (JPM) purchased the majority of its assets, marking the third failure of an American bank since the collapse of Silicon Valley Bank and Signature Bank in March. First Republic had been on the brink of failure for nearly two months, with deposit outflows totaling over $70 billion in the previous week alone.
2023-05-02 11:43:13
Article from finance.yahoo.com
