Highlights
Risk aversion continued for a second day Friday with bank stocks sinking again after the failure of Silicon Valley Bank added to worries about the financial sector and the threat of recession.
The Dow Jones industrial average fell 1.1 percent, the S&P 500 lost 1.5 percent, and the NASDAQ dropped 1.8 percent as the major averages dropped about 5 percent on the week. US Treasury yields continued to plunge in the flight from risk with the 2-year note yield down another 29 basis points on top of Thursday's 20 basis point decline. The dollar fell; oil prices rose on the day but were down for the week.
Major stock indexes made a push higher through the morning as a mixed US jobs report and the banking worries spurred investors to cut back expectations for the Federal Reserve to resume its more aggressive rate path. But risk aversion headed into the weekend spurred more selling through the afternoon.
News of a huge 4.3 percent monthly jump in used-car prices in the Manheim used vehicle report was another negative for risk appetite as it spurred talk that next week's core consumer prices report may surprise to the upside.
Among sectors, worst were financials, materials, real estate, industrials, and utilities. Airlines, chemicals, and software lagged too. Holding up best were aerospace & defense, precious metals, pharma, and biotech.
The Dow Jones industrial average fell 1.1 percent, the S&P 500 lost 1.5 percent, and the NASDAQ dropped 1.8 percent as the major averages dropped about 5 percent on the week. US Treasury yields continued to plunge in the flight from risk with the 2-year note yield down another 29 basis points on top of Thursday's 20 basis point decline. The dollar fell; oil prices rose on the day but were down for the week.
Major stock indexes made a push higher through the morning as a mixed US jobs report and the banking worries spurred investors to cut back expectations for the Federal Reserve to resume its more aggressive rate path. But risk aversion headed into the weekend spurred more selling through the afternoon.
News of a huge 4.3 percent monthly jump in used-car prices in the Manheim used vehicle report was another negative for risk appetite as it spurred talk that next week's core consumer prices report may surprise to the upside.
Among sectors, worst were financials, materials, real estate, industrials, and utilities. Airlines, chemicals, and software lagged too. Holding up best were aerospace & defense, precious metals, pharma, and biotech.
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.
