But high rates are a notoriously blunt tool that slow the entire economy, raise the risk of a recession and hurt prices for investments. The Fed has been raising rates sharply in hopes of getting high inflation under control. And the stock market’s reaction indicates investors see First Republic Bank, which plunged 75% last week, as an isolated rather than systemic problem. banks are feeling less pressure now, and several banks under scrutiny have said their deposit levels have strengthened since late March. That fueled a larger worry that runs on smaller and midsized banks could take down the economy, like the financial industry’s woes did in 2008.īut analysts and economists see big differences between then and now. The Dow Jones Industrial Average slipped 46.46, or 0.1%, to 34,051.70, and the Nasdaq composite fell 13.99, or 0.1%, to 12,212.60.įirst Republic has been feared as the next to topple following March’s failures of Silicon Valley Bank and Signature Bank. On Wall Street, the S&P 500 was virtually unchanged after regulators seized First Republic Bank and sold off most of it in hopes of preventing more turmoil in the industry. Recent China’s manufacturing data showed a contraction, reflecting how the weakening export market is starting to hurt the domestic economy, according to analysts.Ģ mass shootings in 2 days plunge Serbia into shock, dismay Oil prices and currencies were little changed.

Markets are also bracing for what is hoped to be the last interest rate hike by the U.S. Economic and inflation reports are also expected in Europe ahead of the central bank meeting later in the week. The Reserve Bank of Australia was holding a policy meeting, but no change was expected.

Hong Kong’s Hang Seng was virtually unchanged at 19,885.48. South Korea’s Kospi gained 0.8% to 2,522.09. Trading was closed in Shanghai for Labor Day.Īustralia’s S&P/ASX 200 dipped 0.2% to 7,319.40. Trading in Tokyo will be closed for Golden Week holidays the rest of the week. Japan’s Nikkei 225 edged up 0.2% to 29,175.44 in morning trading. TOKYO (AP) - Asian shares were mixed Tuesday with some markets closed or anticipating holidays and investors showing muted reaction to the latest historic U.S.

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