Markets Drop on Fears of Slowing Growth

U.S. equities fell as the Labor Department’s JOLTS report on job openings in February showed a steep decline, raising concerns about the strength of the labor market and economic growth. The Dow and S&P 500 both snapped four-day winning streaks. The Nasdaq was down for a second straight session after hitting a more than six-month high on Friday. 

Bank stocks stumbled as JPMorgan Chase (JPM) CEO Jamie Dimon told shareholders that the recent banking problems tied to the collapse of Silicon Valley Bank and Signature Bank are not over and that the repercussions will last a long time. Shares of First Republic Bank (FRC), Comerica (CMA), and KeyCorp (KEY) dipped 5%. Shares of large banks, including Dimon’s JPMorgan Chase, also lost ground.

Shares of Steel Dynamics (STLD), Nucor (NUE), and rival steelmakers dropped along with the price of steel. Shares of Caterpillar (CAT), Deere & Company (DE), and United Rentals (URI) tumbled on worries that an economic slowdown will reduce demand for their equipment. Virgin Orbit Holdings (VORB) declared bankruptcy after being unable to secure new funding, and shares of the satellite launch firm started by Sir Richard Branson plummeted. 

Gold Mining Stocks Surge

Gold prices soared to their highest level in more than two and a half years, lifting shares of Newmont Corporation (NEM), Barrick Gold (GOLD), and other gold miners. An analyst upgrade sent ServiceNow (NOW) shares higher. Just nine stocks in the Dow were in positive territory, although shares of five of them, Amgen (AMGN), Johnson & Johnson (JNJ), Nike (NKE), Verizon Communications (VZ), and Walgreens Boots Alliance (WBA), added 1% or more. 

Oil futures were flat. The yield on the 10-year Treasury note sank. The U.S. dollar fell versus the euro, pound, and yen. Trading in major cryptocurrencies was mixed.