First Republic Bank (NYSE: FRC) is no longer an independent entity, as California authorities have taken possession of the San Francisco-based lender. JPMorgan Chase (NYSE: JPM) will assume all of its deposits. The bank faced a stock slump after more than $100 billion in deposits left the institution due to the failures of Silicon Valley Bank and Signature Bank.
Federal Reserve Meeting Expected to Impact Interest Rates
Investors are closely watching the Federal Reserve's policy-setting meeting, which may signify the end of the central bank's aggressive year-long tightening cycle. A quarter percentage point interest rate increase is anticipated, but expectations are growing that officials will eventually lower rates due to slowing economic growth and concerns about the banking sector.
U.S. Futures Subdued; Key Economic Data Awaited
U.S. futures traded cautiously at the start of the week, as investors anticipate a crucial Fed meeting, the monthly jobs report, and significant corporate results. Monday will also see the release of ISM manufacturing data and construction spending, offering insight into the economy's strength before Wednesday's Fed meeting.
Apple Earnings Report to Influence Markets
Apple (NASDAQ: AAPL), the largest U.S. company by market value, is set to report earnings on Thursday. The iPhone maker's report is a key indicator of global consumer demand and will impact markets. Other major companies reporting earnings this week include Ford, Starbucks, Advanced Micro Devices, Kraft Heinz, Marriott International, Moderna, Pfizer, and Uber Technologies.
Oil Prices Drop Amid Fed Hike and Chinese PMI Concerns
Crude prices fell on Monday due to weak Chinese manufacturing data and concerns that another interest rate hike by the Federal Reserve will restrict activity in the world's largest economy. China's official manufacturing purchasing managers' index slipped into contraction territory, raising concerns about a sustained recovery in activity after the easing of COVID restrictions.
