Markets Open the Month With Small Losses

Table showing the performance of major U.S. financial indexes on May 1, 2023


Key Takeaways

  • Major U.S. equities indexes moved slightly lower on May 1, 2023, after regulators took over First Republic Bank.
  • Shares of JPMorgan Chase (JPM) posted gains following the bank's purchase of most of First Republic's assets.
  • The yield on the 10-year Treasury note jumped higher, with expectations of an additional interest rate hike at the Fed's upcoming meeting.

U.S. equities began the month of May slightly lower following the government takeover and sale of First Republic Bank, and as the market weighed the impact of more corporate earnings reports and this week's Fed meeting. The yield on the 10-year Treasury note soared in anticipation that policymakers will again hike interest rates to fight inflation.

JPMorgan Chase (JPM) shares advanced 2% as the biggest U.S. bank purchased most of the assets of First Republic following a decision by regulators to seize control of the struggling bank. ON Semiconductor (ON) shares jumped after the chip company's profit, sales, and guidance beat estimates. Two other semiconductor companies, Nvidia (NVDA) and Microchip Technology (MCHP), also posted strong gains.

Norwegian Cruise Line (NCLH) was the best-performing stock in the S&P 500 as the cruise operator reported better-than-expected earnings and revenue. Shares of rivals Carnival Corporation (CCL) and Royal Caribbean Cruises (RCL) were also up.

Shares of Citizens Financial Group (CFG) and several other regional banks fell following the takeover of First Republic. PNC Financial Services Group (PNC) shares dipped as it lost out in the bidding for First Republic.

Lordstown Motors Shares Sink

Shares of Newell Brands (NWL) sank after the maker of Rubbermaid and other household products reported a quarterly loss. Global Payments (GPN) announced that longtime CEO Jeff Sloan was stepping down next month, and shares of the payment technology provider slipped. Lordstown Motors (RIDE) shares cratered as the electric truck maker warned that it could face bankruptcy without additional funding from Taiwan's Foxconn.

Oil and gold futures were in the red. The U.S. dollar climbed against the euro, pound, and yen. Prices for most major cryptocurrencies tumbled.

S&P Gainers Losers 05012023


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