Dow Jones falls as banking sector turmoil continues – 05 April 2023
05 Apr 2023
Weaker industrials and renewed banking concerns weigh on Dow.
- On Tuesday, the Dow Jones Industrial Average closed lower due to a decline in industrial stocks and concerns over the banking sector’s ongoing turmoil.
- The Nasdaq and S&P 500 also fell. Financials, particularly regional banks, experienced a selloff led by Zions Bancorporation, First Republic Bank, and Comerica. JPMorgan’s CEO warned that the banking crisis was far from over and could have repercussions for years to come.
- The Labor Department’s latest JOLTs report also showed a decrease in job openings, raising concerns about the economy.
- Industrials were another significant drag on the market, with Caterpillar Inc. and United Rentals, Inc. declining after a Baird downgrade due to reduced lending activity in regional banks. Boeing Co. fell almost 1%, and energy stocks, such as Marathon Oil Corporation, Phillips 66, and Valero Energy Corporation, experienced losses as investor focus shifted to the impact of a slowing global economy on crude demand.
- Virgin Orbit Holdings also fell 23% after filing for Chapter 11 bankruptcy protection due to a lack of funding.