- U.S. equities indexes moved lower on March 10, 2023, with uncertainty rippling through the markets following the takeover of Silicon Valley Bank by regulators.
- The three major indexes posted losses of at least 1% during Friday's session, closing out a week that saw them all tumble by around 4.5%.
- Gold prices gained 2%, sending shares of Newmont Mining (NEM) and other gold miners higher.
U.S. equities sank, closing out a down week, as the collapse of Silicon Valley Bank sent shock waves through the banking sector and financial markets. The news overshadowed the February employment report showing that the economy added more jobs than expected last month, but wage growth slowed, fueling speculation that the Fed might moderate its interest rate hikes. The Dow, S&P 500, and Nasdaq lost more than 1%. For the week, all three were down about 4.5%.
Trading of shares of Silicon Valley Bank's holding company, SVB Financial Group (SIVB), was halted following yesterday's massive selloff and ahead of today's takeover of the bank by regulators. Regional bank shares were especially impacted by what happened. Shares of Signature Bank (SBNY), which is a major financial firm for the cryptocurrency industry, plunged 23%, fueled by the SVB fallout and the earlier collapse of crypto bank Silvergate Capital (SI). Silvergate's shares dropped as well. First Republic Bank (FRC), Truist Financial (TFC), Fifth Third Bancorp (FITB), and KeyCorp (KEY) shares declined.
Caterpillar (CAT) shares led the Dow lower, dipping almost 6% on a downgrade from UBS. A Jefferies downgrade drove down shares of Charles River Laboratories (CRL). Indications of block sales of stock by company insiders led to a second straight day of losses for shares of Charles Schwab (SCHW). The Gap (GPS) shares dropped after the apparel retailer posted a bigger-than-expected loss and sales slumped. All the FAAMG stocks were down more than 1%.
Dow and S&P 500 Winners
Four stocks in the Dow, Intel (INTC), JPMorgan Chase (JPM), The Travelers Companies (TRV), and Boeing (BA), were among the best performers in the S&P 500. Gold prices rose 2%, and that lifted shares of Newmont Corporation (NEM) and rival gold miners. Moderna (MRNA) shares advanced as the COVID-19 vaccine maker said it was adding 2,000 employees and expanding its presence in the U.S.
The possibility of the Fed easing its tight monetary policy sent the yield on the 10-year Treasury note plummeting. Oil futures added 1%. The U.S. dollar fell versus the euro, pound, and yen. Prices for major cryptocurrencies came off earlier lows and were mixed.