PARIS (Reuters) – The New York Stock Exchange opened on a cautious note on Monday as investors focused on the U.S. Federal Reserve’s monetary policy decision expected within the week, while regulators said they had seized regional bank First Republic Bank and an agreement with JPMorgan for its rescue.
The rescue of First Republic Bank is the third in less than two months in the United States after the bankruptcies of Silicon Valley Bank and Signature Bank, which forced the Fed to intervene urgently to stabilize the markets.
In early trading, the Dow Jones index gained 18.65 points, or 0.05%, to 34,116.81 points and the broader Standard & Poor’s 500 fell 0.06% to 4,166.79 points.
The Nasdaq Composite lost 0.14%, or 16.54 points, to 12,210.05 points.
Investors have their eyes glued to the outcome of the Fed’s meeting with the hope that it will soon end the tightening of the Fed’s monetary policy.
The latest economic releases boosted expectations of another 25 basis point rate hike, with investors pricing the odds of such a move at 90%, according to the CME’s FedWatch.
On the value side, the title First Republic fell by 46% in pre-market trading before the quotation was suspended, while the JPMorgan action opened up nearly 3%.
(Written by Matthieu Protard)
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