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Why First Republic's rescue isn't arresting a selloff in U.S. regional bank stocks

Market Extra Last Updated: May 2, 2023 at 9:56 p.m. ET First Published: May 2, 2023 at 4:37 p.m. ET Recession fears, bank failures and debt-ceiling concerns may bolster case for a Fed pause, after one last rate hike Wednesday, says market economist The seizure of troubled First Republic and the subsequent takeover by JPMorgan

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Market Extra

Recession fears, bank failures and debt-ceiling concerns may bolster case for a Fed pause, after one last rate hike Wednesday, says market economist

The seizure of troubled First Republic and the subsequent takeover by JPMorgan Chase is failing to arrest a slide in U.S. regional bank stocks.

Spencer Platt/Getty Images

Stock-market investors didn’t get much time to enjoy a brief period of relief for stocks following JPMorgan Chase & Co.’s takeover of First Republic Bank. 

The seizure on Monday of troubled First Republic FRC and the subsequent takeover by JPMorgan Chase JPM failed to arrest a slide in U.S. regional bank stocks on Tuesday, as weak economic data and a fast-approaching U.S. debt deadline put renewed pressure on the economy.

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