U.S. stock futures were muted ahead of the open on Monday, as Wall Street digests JPMorgan Chase’s takeover of regional lender First Republic Bank.
Contracts on the S&P 500 (^GSPC) and futures tied to the technology-heavy Nasdaq Composite (^IXIC) slipped below the flatline, while the Dow Jones Industrial Average (^DJI) was little changed.
Government bonds were mixed. The yield on the 10-year note added to 3.45%, while the rate-sensitive two-year note yield rose to 4.07% Monday morning.
Ahead of the open, investors are digesting the news of JPMorgan Chase taking over First Republic. The Federal Deposit Insurance Corporation announced the news early Monday morning. JPMorgan, the largest bank in the U.S., agreed to assume all of First Republic’s deposits after it was seized by regulators, becoming the third U.S. bank to fall since March.
A number of banks, including JPMorgan and PNC, submitted bids on Sunday to the Federal Deposit Insurance Corporation to acquire the embattled bank.
Shares of First Republic Bank (FRC) tanked over 45% in premarket trading Monday while shares of JPMorgan (JPM) gained 3% ahead of the open.
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, data releases on construction spending, factory orders, jobless claims are on deck this week, and the big headliner at the end of the week will be the April jobs report. All the economic data is expected to lead to another volatile week for the Treasury yields.
Meanwhile, most of the big tech earnings are now in, and one of the big takeaways from the price action is just how much the industry has bolstered the market this year as tech stocks continue to dominate the landscape. 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 SoFi Technologies, Inc. (SOFI) jumped 7% in premarket trading 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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