US Stock Market News: Dow Jones jumps 103 points in early trading after JPMorgan's takeover of First Republic Bank

Dow Jones opened on a high note on Monday morning on the back of the news of JPMorgan Chase's takeover of failed First Republic Bank. Investers reinforced their belief in the market after the deal, as the Dow Jones Industrial Average gained 113 points, or 0.3 per cent in the early session. Following in the footsteps of the Dow, the S&P 500 also jumped 0.3%. The Nasdaq Composite, however, was close behind with a 0.1 per cent rise. 

The Dow fluctuated between a flatline and slight gains during the session, even as Wall Street was not gaining pace early in the session. The S&P 500 and Nasdaq didn't open on a high note, but after a brief slowdown, they recovered soon.

The banking crisis has been hovering over the US market ever since Silicon Valley Bank and Signature Bank collapsed in March. However, major US indices have recovered sharply from the March lows with the Dow up more than 7 per cent and the S&P 500 up 8 per cent in little over a month. During the same time, the Nasdaq Composite, has also soared 9 per cent.

While the early trends showed positive signs for the major US indices on Monday, JPMorgan Chase shares also gained 2.9 per cent after inking the deal of the weekend auction for First Republic. The bank has acquired the troubled lender First Republic’s deposits along with a "substantial majority of assets." The deal is most likely to strengthen JPMorgan Chase's stature, which is already one of the biggest banks in the United States.

JPMorgan Chase CEO Jamie Dimon was confident that the Republic Bank deal has resolved the sluggishness of the banking sector, which triggered with the fall of Silicon Valley Bank. 

"There are only so many banks that were offsides this way. There may be another smaller one, but this pretty much resolves them all; this part of the crisis is over," Dimon told his shareholders after the deal.