TD:CC - Nasdaq S&P 500 Dow drop again as banking worries resurface

2023-05-04 16:08:54 ET

Renewed worries about the banking sector weighed on Wall Street sentiment during Thursday's trading, with the major U.S. equity averages pushing lower yet again. Investors also continued to digest the previous day's Federal Reserve decision, while looking ahead to Apple ( AAPL ) earnings due out after the close.

The Nasdaq Composite ( COMP.IND ) closed -0.5% , the S&P 500 ( SP500 ) ended -0.7% and the Dow ( DJI ) finished -0.9% . With the slide, the S&P 500 recorded its fourth consecutive day of declines.

Regional banks moved back into the spotlight, as concerns about the stability of sector refused to subside. Shares of PacWest Bancorp ( PACW ) cratered more than 50% after the lender confirmed that it was in discussions for strategic options .

At the same time, Western Alliance Bancorp ( WAL ) shed about 39% amid a report ( denied by the company ) that it was exploring a potential sale. A third major headline was generated by First Horizon ( FHN ), which slumped 37% after ending its proposed merger with TD Bank ( TD ) due to uncertainty over regulatory approvals.

Thursday's decline followed a retreat the previous day, when stocks reacted to the Federal Reserve's latest decision on interest rates. The central bank raised its key rate another quarter percentage point and stressed that it will pursue a data-dependent approach to future decisions.

The fixed-income market generally saw buying, sending Treasury yields lower. The 10-year yield ( US10Y ) slipped 4 basis points to 3.37% and the more rate-sensitive 2-year yield ( US2Y ) declined 17 basis points to 3.76%.

More on the Stock Market

• Bonds Likely Offsides As Powell Dances Around A Pause
• The Fed's Latest Rate Decision: What Should Investors Watch Going Forward?
• Post-Fed the new market buzzword is SLOOS - here's what to know

For further details see: