The Dow Jones Industrials reversed course after this morning’s gains and plunged 542.35 points, or 1.7%, to conclude Thursday at 32,256.05.
The S&P 500 slumped 73.58 points, or 1.8%, to 3,918.43.
The NASDAQ Composite withered 237.65 points, or 2.1%, to 11,338.35.
SVB Financial cratered 61% after announcing a $1.75-billion stock sale, pushing its market capitalization to a little over $6 billion and dragging down other regional bank names. Silvergate shares plummeted 30% on news that it’s shutting down operations.
The losses pushed that S&P financial sector down 4% for its worst day since June 2020. Financial bellwethers Bank of America and Wells Fargo also took a hit, tumbling more than 6% each.
Thursday’s moves come a day after Federal Reserve Chief Jerome Powell reiterated his warning message to lawmakers that the central bank may raise interest rates higher than previously expected. While the Fed chair emphasized that no decision has been made regarding the March meeting, traders are bracing for a larger-than-expected hike following a batch of strong economic data in recent weeks.
Prices for the 10-year Treasury climbed, lowering yields to 3.92% from Wednesday’s 3.98%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.12 to $75.84 U.S. a barrel.
Gold prices jumped $16.40 to $1,835.00 U.S. an ounce.