US benchmark equity indexes fell Thursday amid a sell-off in the financial sector tied to banking concerns, while markets awaited official jobs data for April due Friday.
The Dow Jones Industrial Average dropped 0.9% to 33,127.7, while the S&P 500 lost 0.7% to 4,061.2. The Nasdaq Composite closed 0.5% lower at 11,966.4. Financials led the decliners among sectors, down 1.3%. Real estate and utilities closed higher.
Read More:-Stock market today: Global markets up ahead of US jobs data
PacWest Bancorp (PACW) said it will continue to assess “all options” to maximize shareholder value. “Recently, the company has been approached by several potential partners and investors — discussions are ongoing,” it said.
PacWest shares plunged 51% on Thursday. Zions Bancorporation (ZION) and Comerica (CMA) were down 12% each. Western Alliance Bancorporation (WAL) slumped 38%, with Regions Financial (RF), Citizens Financial Group (CFG) and Truist Financial (TFC) also trading lower.
JPMorgan Chase (JPM) recently took over First Republic Bank, which became the third major financial institution to collapse since March.
On Thursday, Toronto-Dominion Bank (TD) pulled out of its planned $13.4 billion all-cash takeover of US bank First Horizon (FHN), citing uncertainty regarding regulatory approvals. First Horizon shares slumped 33%, while Toronto-Dominion’s New York Stock Exchange-listed stock ticked up nearly 1%.
Read More:-11 Expenses That Almost Totally Disappear When You Retire
The US two-year yield plummeted 15.5 basis points to 3.78%, and the 10-year rate dropped 2.8 basis points to 3.38%. West Texas Intermediate crude oil dropped 0.2% to $68.49 per barrel on Thursday.
The Federal Reserve on Wednesday raised its benchmark lending rate by 25 basis points to a range of 5% to 5.25%.
Official data due Friday are expected to show nonfarm and private payrolls growth of 178,000 and 153,000, respectively, for April, according to the consensus on Econoday. Those prints would be down from 236,000 and 189,000, respectively, reported for the prior month.
Also Read– Before You Buy VICI Properties: Here’s a Net-Lease REIT Stock I’d Buy First
The US international trade deficit narrowed sharply in March as exports increased while imports slowed. The goods and services deficit shrank to nearly $64.23 billion in March from February’s revised print of $70.64 billion, government data showed. The consensus on Econoday was for the deficit to reach $63.7 billion.
Weekly claims for jobless benefits in the US rose more than expected last week as companies continued to announce layoffs, suggesting the labor market may be loosening amid high interest rates, according to government data.
Read More:– Want $1 Million in Retirement? Invest $250,000 in These 3 Stocks and Wait a Decade.
Paramount Global (PARA) shares tumbled 28% Thursday, the worst performer on the S&P 500. The media, streaming and entertainment company reported weaker-than-expected first-quarter results amid advertising weakness in its television business, while it cut its dividend.
Datadog (DDOG) was the top gainer on the Nasdaq, up nearly 15%, after the company’s first-quarter results topped market expectations.
Gold gained 1% to $2,057.1 per troy ounce, while silver jumped 2.5% to $26.33 per ounce.
