Stocks fall as drug, bank sectors sink

U.S. stocks skidded Thursday as drug companies and banks absorbed large losses. Drugmakers faced scrutiny over price increases, while banks fell as investors worried about the stability of Deutsche Bank and other financial institutions.

The price of oil continued to rise, which sent oil drilling and equipment firms higher. Stocks gave up most of their gains from the last two days.

Quincy Krosby, market strategist for Prudential Financial, said investors don’t trust Deutsche Bank’s statements about its financial health and are worried what will happen to the bank and to the broader financial system if Deutsche Bank runs low on capital.

Mylan slumped 4.4% to $38.47 after a group of senators asked the Justice Department to investigate whether the drugmaker broke the law when it classified its emergency allergy shot EpiPen as a generic drug, which allowed it to make lower rebate payments to states. Other drug companies traded lower as investors worry that the government will take action to rein in drug price increases. Amgen fell 2.5% to $165.45.

Financial stocks sank on renewed worries about Deutsche Bank. U.S. regulators are seeking $14 billion to settle legal claims over its sales of mortgage securities. It’s also unclear whether the German government would support the bank if it runs low on capital. Deutsche Bank has said it’s not seeking government aid.

Deutsche Bank’s U.S.listed shares have lost more than half their value this year. On Thursday, they tumbled 6.7% to $11.48.

Oil prices rose after a 5% surge the day before. Energy prices had jumped after the nations of OPEC agreed to a small cut in production. U.S. crude rose 1.7% to $47.83 a barrel. Brent crude, the international benchmark, rose 1% to $49.24 a barrel.

Bond prices moved higher. The yield on the 10year Treasury note fell to 1.56% from 1.57%.

Wholesale gasoline fell 1 cent to $1.47 a gallon. Heating oil rose 2 cents to $1.51 a gallon. Natural gas fell 4 cents to $2.96 per 1,000 cubic feet.

Gold rose $2.30 to $1,326 an ounce. Silver rose 7 cents to $19.19 an ounce. Copper was flat at $2.19 a pound.

The dollar climbed to 101.07 yen from 100.75 yen. The euro inched up to $1.1216 from $1.1214.