Derivatives markets show investors now expect the Fed’s target rate to sit at 5% at year-end, up from just above 4% last month.

Despite steady job gains, Americans are growing more pessimistic about economic growth, which slowed in the first quarter. Consumer confidence fell in May for the second straight month.

Companies in the Russell 3000 have unveiled plans to buy back more than $600 billion in shares this year, in line with last year’s record pace. In all, they announced $1.27 trillion of share repurchases and completed $1.05 trillion in buybacks in 2022, both all-time highs.

The Federal Reserve’s rate-raising campaign has put a notable crimp in financing for companies with smaller payrolls and valuations. The average rate for a loan from the U.S. Small Business Administration, which historically costs less than a bank loan, has reached double-digits, driving many small firms to borrow less.

Pipeline operator Oneok agreed Sunday to buy smaller rival Magellan Midstream Partners for about $14 billion, a deal that would form one of the biggest U.S. companies involved in transporting and storing energy.

Job satisfaction hit a 36-year high in 2022, reflecting two effects of the tight pandemic labor market: The quality of jobs improved as wages and work flexibility increased, and workers moved into positions that were a better fit. Last year, 62.3% of U.S. workers said they were satisfied with their jobs, up from 60.2% in 2021 and 56.8% in 2020.

The Fed’s rate hike was its 10th since March of 2022. Seeking to rein in high inflation, the central bank has increased the key federal-funds rate from next to nothing to between 5% and 5.25% over that span.

Harley-Davidson last week said its credit loss rate rose to 3.2% in the first quarter, up from its typical rate of about 2%.

Active funds still make up a sliver of the roughly $7 trillion ETF market—less than 6% of total assets—but have attracted about 30% of the total flows to ETFs so far this year. That follows a banner year for active ETFs in 2022, when they gathered roughly 14% of total flows. Analysts say the outsize flows reflect greater interest in active management amid turbulent markets as well as the ease with which they allow investors to more easily trade specific strategies.

First Republic Bank was seized and sold to JPMorgan. The deal will see JPMorgan take on all of First Republic’s $103.9 billion in deposits and buy most of its $229.1 billion in assets.