Stocks tumble as banks take losses
U.S. stocks sank Thursday to their biggest loss in a month and a half as banks and technology companies fell. Interest rates moved lower, hurting financial stocks. The dollar continued to fall compared with the Japanese yen.
Stocks sharply reversed course after their Wednesday gains. Financial companies took the largest losses. Tech and telecommunications companies also fell.
Stocks have fallen three out of four days this week. The market has lost momentum in the last few weeks after a furious rally that wiped out most of its losses from early 2016.
Scott Wren, senior global equity strategist for Wells Fargo’s Investment Institute, said stocks are moving based on how investors expect the global economy to do.
“People are worried about growth,” he said. “You’re not getting much more than modest economic activity.”
Financial companies fell sharply, with Citigroup sinking 3.8% to $40.27. Wren said banks are struggling because economic growth is sluggish and interest rates remain low, which means that the banks can’t make as much money from lending.
EBay led tech stocks lower, sinking 5.2% to $24.10. Apple fell 2.2% to $108.54.
Wynn Resorts jumped 11.7% to $99.99 after the hotel and casino company proposed a new development. It wants to build a recreational lake and hotel behind its Wynn Las Vegas property.
U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.69% from 1.76%.
The dollar continued to weaken against the yen, reaching its lowest compared with the yen in almost a year and a half. On Thursday it fell to 108.24 yen from 109.62 yen. The euro declined to $1.1377 from $1.1410.
Benchmark U.S. crude fell 49 cents, or 1.3%, to $37.26 a barrel. Brent crude, used to price international oils, dropped 41 cents to $39.43.
Costco declined after the wholesale club operator company disclosed its March sales. Its stock fell 3% to $152.03.
Gap shares, which closed down 4.1% at $27.68, dropped nearly 9% in extended trading after the ailing clothing retailer announced March results showing its sales fell
Gold climbed $13.70, or 1.1%, to $1,237.50 an ounce. Silver rose 10 cents to $15.16 an ounce. Copper fell 7 cents, or 3.1%, to $2.08 a pound.
Wholesale gasoline fell 1 cent to $1.38 a gallon. Heating oil slipped 1 cent to $1.13 a gallon. Natural gas rose 11 cents, or 5.6%, to $2.02 per 1,000 cubic feet.
The Labor Department said applications for unemployment benefits fell slightly last week. That shows employers aren’t slashing jobs despite signs that economic growth is weak.