The latest historic US banking failure is making few waves in markets, and stocks are drifting Monday as Wall Street braces for what it hopes will be the last hike to interest rates for a long time.

The S&P 500 was virtually unchanged in late trading after regulators seized First Republic Bank and sold off most of it in hopes of preventing more turmoil in the industry. The Dow Jones Industrial Average was down 27 points, or 0.1 per cent at 34,070, while the Nasdaq composite was 0.1 per cent lower with a bit more than 40 minutes to go in trading.

First Republic has been in the spotlight for nearly two months on worries it could be next to topple following March’s failures of Silicon Valley Bank and Signature Bank. The worry was that runs on smaller- and mid-sized banks could take down the economy, like the financial industry’s woes during the 2008 crisis did.

But analysts and economists have said they see big differences between then and now, including how the biggest US banks are feeling less pressure this time around. Plus, several banks that have been under scrutiny for weakness recently have said their deposit levels have strengthened since late March.

Analysts said the difference between the stock market’s reactions to them and First Republic Bank, which plunged 75 per cent last week, indicates investors may see it as an isolated event rather than a problem with the deeper system.

Still, many other questions continue to hang over Wall Street that could shake things up. They include worries about corporate profits and the US government’s latest squabble over the country’s debt limit.