Highlights
Risk-off sentiment before Friday's US employment report knocked equities lower and powered a rally in US Treasuries Thursday. Equity losses accelerated into the close as the market continued to adjust to its realization that the Federal Reserve is a long way from the hoped-for pause in rate increases.
The Dow Jones industrial average fell 1.7 percent, the S&P 500 lost 1.9 percent, and the NASDAQ dropped 2.1 percent. US Treasury yields plunged with the 2-year note yield down 20 basis points. The dollar and oil prices slipped.
A nasty selloff in bank stocks paced the decline as concerns about recession and losses in bank portfolios multiply. SVB, the lender to Silicon Valley startups, was the day's featured loser as it was forced to raise capital to offset losses in its portfolio. Credit Suisse dropped after delaying its annual report at the request of the Securities and Exchange Commission. Investors also fretted over spillover from the collapse of Silvergate Capital, the crypto-friendly bank.
Stock losses were across the board. In addition to financials, biggest decliners included energy as oil prices continued down, plus autos and suppliers as Tesla had another bad day. Travel & tourism, casinos, media, airlines, drug stores, chemicals, and metals lagged too.
The Dow Jones industrial average fell 1.7 percent, the S&P 500 lost 1.9 percent, and the NASDAQ dropped 2.1 percent. US Treasury yields plunged with the 2-year note yield down 20 basis points. The dollar and oil prices slipped.
A nasty selloff in bank stocks paced the decline as concerns about recession and losses in bank portfolios multiply. SVB, the lender to Silicon Valley startups, was the day's featured loser as it was forced to raise capital to offset losses in its portfolio. Credit Suisse dropped after delaying its annual report at the request of the Securities and Exchange Commission. Investors also fretted over spillover from the collapse of Silvergate Capital, the crypto-friendly bank.
Stock losses were across the board. In addition to financials, biggest decliners included energy as oil prices continued down, plus autos and suppliers as Tesla had another bad day. Travel & tourism, casinos, media, airlines, drug stores, chemicals, and metals lagged too.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
