(MENAFN- Baystreet.ca) Markets Slide with Regional Banks
Stocks fell Friday as investors pulled back from positions in First Republic and other bank shares amid lingering concerns over the state of the U.S. banking sector.
The Dow Jones Industrials forfeited 388.13 points, or 1.2%, to 31,858.42.
The S&P 500 dropped 43.6 points, or 1.1%, to 3,916.68.
The NASDAQ Composite gave up 86.76 points to 11,630.51.
First Republic slid 33% to end the week down 71%. The stock got a boost Thursday when a group of banks said it would aid First Republic with $30 billion in deposits as a sign of confidence in the banking system.
U.S.-listed shares of Credit Suisse were also down 8% as traders parsed through the bank's announcement that it would borrow up to 50 billion francs, or nearly $54 billion, from the Swiss National Bank.
Despite the down session, the S&P 500 has advanced 1.2% so far this week, while the NASDAQ Composite gained 4.1%. But Friday's slide pulled the Dow into negative territory for the week, last down 0.4%.
Bank stocks have been closely followed by investors in recent days amid fears that others could face the same fate as Silicon Valley Bank and Signature Bank, which were both closed within the last week. The market has been responding to the latest developments in the sector after regulators said over the weekend that they would backstop deposits in the two banks.
The shakeup arrives at a time when investors are looking ahead to the Federal Reserve's upcoming meeting on March 21-22. The question on the minds of traders is whether the central bank will proceed with an expected 25-basis-point hike even as banking woes whiplash the market.
Prices for the 10-year Treasury sprang, lowering yields to 3.42% from Thursday's 3.58%. Treasury prices and yields move in opposite directions.
Oil prices docked $2.17 to $66.18 U.S. a barrel.
Gold prices leaped $58.40 to $1,981.40 U.S. an ounce.
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