May is kicking off with a deal for First Republic Bank, though there’s no real celebrating across Wall Street. That’s as investors face a week full of potentially market-moving events — a Fed meeting, jobs data, Apple earnings and ongoing debt ceiling negotiations.
“The Fed pause on 5/3, whose ‘rumor’ has been priced by the SPX SPX /VIX VIX collapse, will be ‘sell the news,’ given inflation remains a problem and the SPX 4,200 ceiling collides with the debt ceiling,” said the team at Evercore. The big date to watch for equities may be May 2, which Evercore points out marked the S&P 500 peak and VIX trough of 2011.
The markets Stock futures ES00 YM00 NQ00 are flat with Treasury yields steady TMUBMUSD10Y TMUBMUSD02Y and the dollar DXY also modestly higher. Oil prices CL.1 are lower, while gold GC00 tilts south and silver SI00 heads the other direction. Europe and London markets are closed for International Labour and May bank holidays.