Dow closes more than 300 points lower, posts worst week since June as Silicon Valley Bank collapse sparks selloff: Live updates
Stocks tumbled Friday as tech-focused lender Silicon Valley Bank shut down following losses in its bond portfolio, prompting the biggest bank failure since the global financial crisis and sending shockwaves through the banking sector.
The Dow Jones Industrial Average dropped for a fourth consecutive day, finishing 345.22 points lower, or 1.07%, to close at 31,909.64. The S&P 500 lost 1.45% to settle at 3,861.59. The Nasdaq Composite shed 1.76% to end at 11,138.89.
All the major averages capped off the week with losses. The Dow fell 4.44% to post its worst weekly performance since June. The S&P dropped 4.55%, while the Nasdaq lost 4.71%.
Regulators took control of Silicon Valley Bank on Friday, after shares tumbled Thursday and the bank struggled on Friday to find another company to buy it. Regional bank stocks tumbled in the wake of Silicon Valley Bank's demise, with the SPDR S&P Regional Banking ETF lost nearly 4.4%. For the week, the regional bank fund lost about 16%, its worst week since March 2020 as the pandemic hit.
"You had a major U.S. bank collapse, the biggest bank failure since 2008, inevitably that's going to spook the market," said Sylvia Jablonski, CEO and chief investment officer of Defiance ETFs. The failure, she added, is also fueling concern among investors over whether the contagion spreads beyond SVB.
Several bank stocks were repeatedly halted on Friday, including First Republic, PacWest and crypto-focused Signature Bank. First Republic dropped 14.8%, and PacWest shed 37.9%. Some bellwether bank stocks suffered smaller losses even as SVB's fallout wreaked havoc on regional names. Goldman Sachs and Bank of America fell 4.2% and 0.9% respectively. JPMorgan held onto a 2.5% gain.
"This is gamebook play, where traders and shorter term investors don't want to be long over the weekend," said Rich Steinberg, chief market strategist at The Colony Group.
The turmoil among bank stocks overshadowed a February jobs report, which gave some hints that inflation could be slowing. Payrolls increased more than expected, but investors focused on the smaller-than-expected gain in wages, which may cause the Federal Reserve to rethink its aggressive stance on rate hikes.
Silicon Valley Bank failure also lowers the boom on biotech stocks
Silicon Valley Bank's failure Friday also harmed an industry that on its face is closer to the frontiers of medical science than it is banking or finance — biotechnology.
For some biotech companies, especially smaller, less-tested startups, SVB was a vital lifeline and conduit to Wall Street finance. SVB also held some of the companies' cash on hand.
"Within biotech, SVB has been heavily involved in the investment banking activities of numerous companies," a note out Friday from analysts led by Bank of America's Jason Gerberry noted.
As a result, the SPDR S&P Biotech ETF (XBI) slumped 3.9% Friday — but at one point in mid-afternoon trading was down by as much 6.2%.
As so often happens on Wall Street, the reaction is to shoot first and ask questions later. Silk Road Medical (SILK) fell 4.1% Friday. Silk told Mizuho Securities, it was "Monitoring the situation very closely" and held some "operating cash at SVB, but the bulk of its cash is at a custodian (a larger US bank)."
Shock Wave Medical (SWAV) slid 4.2% Friday, telling Mizuho that it "has operations accounts at SVB and with a large bulge bracket bank." Mizuho said that "SWAV exposure is technically limited ... they are still working to further reduce exposure and move most everything over to the large bulge bracket bank. "
Ultragenyx Pharmaceutical (RARE) dropped 2.9% despite telling analysts at Stifel that its cash holding was spread across several banks, with the "smallest amount," less than $5 million, at SVB. Its "exposure should be immaterial to the $900M reported (YE22)," Ultragenyx told Stifel.
— Scott Schnipper, with reporting by Michael Bloom
Stocks finish lower, selloff pushes Dow to worst week since June
Stocks finished lower for the week after the collapse of Silicon Valley Bank fueled a broad market selloff.
The Dow Jones Industrial Average dropped 345.22 points lower, or 1.07%, to close at 31,909.64. The S&P 500 lost 1.45% to settle at 3,861.59. The Nasdaq Composite shed 1.76% to end at 11,138.89.
All the major averages ended the week with losses. The Dow shed 4.44% for its worst weekly performance since June. The S&P dropped 4.55%, while the Nasdaq lost 4.71%.
— Samantha Subin
Bank slump could create opportunities in financials
The selloff in bank shares this week could create an opportunity for investors to snatch up some quality banks at good prices, said Gina Bolvin, president of Bolvin Wealth Management.
"Right now we're neutral on financials, but, as they get cheaper, and as they're selling off, there may be an opportunity to invest in some of the larger, more quality banks," she said.
These names typically have more diversified businesses, she said, adding that turmoil at SVB is unlikely a "systematic" issue.
— Samantha Subin
Half-percentage point interest rate hike became less likely with SVB shut down, market analyst says
Friday's jobs and wage data showed signs that previous interest rate hikes from the Federal Reserve have had the intended impacts of cooling the economy, said Edward Moya, senior market analyst at Oanda. Paired with the shut down of Silicon Valley Bank, he said the likelihood of the central bank moving back to a half-percentage point interest rate hike at the next policy meeting is unlikely.
"At the end of the day, traders are seeing this cooling/hot payroll report as confirmation that Fed policy is restrictive and that the their tightening work is almost done," Moya said. "If we didn't have SVB's failure and contagion risk the case for a half-point rate hike would be valid."
"The focus will fall on SVB contagion risks and Tuesday's inflation report," he added. "As long as we don't see a scorching hot inflation report, the Fed should continue with its quarter rate point hiking pace."
— Alex Harring
Barclays upgrades United Airlines shares to buy
Shares of United Airlines could be in for big gains, according to Barclays.
Analyst Brandon R. Oglenski upgraded the airline to overweight. He also raised its price target to $80 from $52, implying 53.5% upside from Thursday's closing price.
"Focused leadership and ambitious earnings plans coupled with outsized exposure to growing and lucrative long-haul markets drives attractive risk/reward in UAL shares despite incrementally risky balance," Oglenski wrote in a Friday note.
CNBC Pro subscribers can read more about his upgrade here.
— Hakyung Kim
Bond market's historic move is the largest swing lower in rates since 2008 financial crisis
Treasury yields have moved dramatically over the past two days, as investors rushed to the safety of bonds for fear of systemic risks in the financial system.
The plunge in yields was on par with the sharp two-day decline in September, 2008, when Lehman Brothers failed.
The 2-year Treasury yield, which moves opposite price, had rocketed higher earlier in the week when Fed Chairman Jerome Powell said the Fed may have to raise rates more than anticipated.
But as investors feared Silicon Valley Bank's problems would cause contagion, they bought bonds. As a result, the 2-year yield fell by 46 basis points in just two days, the biggest such move since the financial crisis.
S&P 500 nearly 1% away from going negative on the year in 2023
The S&P 500 only has to fall another 0.8% below its current level in order to go negative on the year.
At this year's intraday high of 4195.44 on Feb. 2, the S&P 500 was 9.3% above the 2022 close of 3839.5.
Since that February intraday high, the S&P 500 has fallen as much as 8.3% to Friday's intraday low of 3846.32 — only a short, stone's throw from the Dec. 30, 2022 close of 3839.50.
So far this week, S&P 500 Financials are 8.2% lower; S&P 500 Materials stocks are down 7.5%; and S&P 500 Real Estate stocks are off 6.7% — all far worse than the S&P 500 decline of 4.4% this week.
— Scott Schnipper
TD Cowen says SVB's failure is contained, citing similarities to Silvergate collapse
Investment bank TD Cowen believes Silicon Valley Bank's failure is more about its "unique business model" rather than broader issues in the U.S. banking system.
"We continue to expect regulators to revamp liquidity rules in response to this failure, but do not expect any change for how most banks treat unrealized losses," analyst Jaret Seiberg wrote in a Friday note to clients. Financial regulators closed SVB earlier today and took control of its deposits, the Federal Deposit Insurance Corp. announced.
Seiberg compared SVB to the collapse of crypto-focused Silvergate Capital, which announced on Wednesday that it will shut down operations and liquidate its bank. SVB was heavily focused on the tech and venture capital space, which was flooded with interest during 2021. Silvergate's shares skyrocketed that year, off of a similar rush into cryptocurrencies and speculative assets.
Because SVB was less dependent on retail deposits compared to a traditional bank, Seiberg said the bank was more exposed to interest rate risk as funding got more expensive, but its assets were not increasing in price.
"If anything, this appears to be a typical bank failure like we saw during the Savings & Loan crisis," Seiberg wrote in the note. "The only difference is that we are dealing with a bank that focused on technology rather than on real estate."
— Pia Singh
Nasdaq losses deepen in afternoon trading
The Nasdaq Composite extended losses in afternoon trading and was last trading lower by 2.08%.
DocuSign, which was plunging on earnings, led the losses, trading down 21%. Atlassian, Datadog and Marvell were the other big losers in the tech-focused index.
The Nasdaq is on pace to end the week down about 5%, but is still up for the year.
— Tanaya Macheel
Jefferies upgrades Roblox shares
Roblox shares were up 2.3% on Friday before the bell after Jefferies upgraded the stock to buy from hold.
"We are upgrading RBLX on a favorable narrative (top line growth w/ margin inflection & an advertising option) supported by strong net bookings expansion and underlying user metrics.," analyst Andrew Uerkwitz wrote in a client note on Friday.
"With regular rollouts of new user and creator features, we are comfortable RBLX will grow through NT competitor and macro pressures. We expect it to remain among the fastest growing internet companies earning multiple expansion, higher estimates, and investor interest," he added.
CNBC Pro subscribers can read more about his upgrade here.
— Hakyung Kim
Russell 2000 suffers amid broad market sell-off, Allbirds among the names leading the way down
The broader market sold off on Friday following news of Silicon Valley Bank's failure, and small caps weren't spared any pain.
The Russell 2000, the benchmark index for small cap companies, shed more than 3% on Friday afternoon. In comparison, the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average were each down more than 1% for the day.
The numbers are even bleaker on the week, with the Russell on pace to lose more than 8%. The major averages are on track to lose more than 4%.
Notable losers in the small cap index include shoe manufacturer Allbirds, which plummeted more than 45%. Loyalty Ventures cratered more than 63%. Silvergate Capital, the crypto focused bank that's on its way to liquidation, dropped more than 16%.
-Darla Mercado, Gina Francolla
Stocks should 'bounce then trounce' after financials' tumble, Canaccord Genuity says
The KBW Bank Stock Index has fallen nearly 12% over the last three days amid the Silicon Valley Bank shutdown. But that doesn't mean a broad and sustained rally will follow, Canaccord Genuity warned.
"While this level of near-term weakness has generally suggested that selling has become extreme enough to generate an oversold bounce, history ultimately points to renewed weakness in the months ahead," analyst Tony Dwyer said in a Friday note to clients.
The index has only posted three-day slides that large during the middle of major market declines in 1998, 2002, 2008, 2011 and 2020.
When looking at those historical cases, the S&P 500 typically saw a near-term rally with an average gain of 10.7% from the three days when the KBW Bank Stock Index tumbled.
But that short-term rally always gave way to a slide, with the S&P 500 moving to 13.4% lower on average than the level it sat at following the initial bank stock fall. In other words, Dwyer said the broader market typically sees a "bounce then trounce" in the aftermath of a downturn among financial stocks.
— Alex Harring
Silicon Valley Bank shutdown marks biggest bank failure since the Global Financial Crisis
The shutdown of Silicon Valley Bank on Friday marks the largest bank failure in history since the Global Financial Crisis.
Financial regulators took control of the tech-focused lender after the bank said earlier this week that it needed to raise more than $2 billion in capital to offset losses.
SVB served as a major bank for venture-backed companies already suffering from higher interest rates and a dwindling market for initial public offerings, hindering their ability to raise cash.
— Samantha Subin, Jesse Pound
Stocks making the biggest moves in midday trading
These stocks are among those making the biggest moves in midday trading:
- Allbirds — Shares slid by 40% after the footwear retailer's fourth-quarter results missed Wall Street's expectations. Additionally, the company posted its first year-over-year sales decline. Allbirds also announced a new business strategy and an executive shake-up. Baird earlier downgraded the company after its disappointing earnings report.
- Signature Bank — Shares of Signature, one of the main banks to the cryptocurrency industry, fell 23% amid a selloff in bank stocks led by Silicon Valley Bank, now in its second day. Earlier in the day the bank's shares fell as much as 32% and were briefly halted for volatility.
- Oracle — The information technology stock dropped 3.2% following a mixed third quarter earnings report. Oracle posted adjusted earnings of $1.22 per share, more than the $1.20 per share expected by analysts polled by Refinitiv. But revenue came in lower than expected, with the company recording $12.40 billion against the $12.42 billion predicted by analysts.
Click here to see more stocks making midday moves.
— Pia Singh
Service jobs powered surprise growth in February
The leisure and hospitality sector was the star of February's jobs report, adding more than 100,000 jobs.
However, there was weakness elsewhere in the economy, with information and manufacturing among the groups posting job losses.
"We're seeing a bifurcation of the economy between the goods and services sector," said Stever Rick, chief economist for CUNA Mutual Group.
— Jesse Pound
Regulators shut down Silicon Valley Bank
The Federal Deposit Insurance Corporation said Friday that Silicon Valley Bank was closed by regulators.
"To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank," the FDIC said in a statement, adding that depositors will have access to their deposits "no later than Monday morning.
— Jesse Pound, Fred Imbert
Inflation data in focus as next important release ahead of Fed meeting
Investor focus has now shifted to Tuesday's release of the February consumer price index, as the last big data inflation report for the Federal Reserve to consider when it meets March 21 and 22.
The February employment report, released Friday, showed a surprisingly large 311,000 jump in payrolls. But other factors in the report, like smaller-than-expected average hourly wage growth of 0.2% and a jump in the unemployment rate were viewed as encouraging by strategists who were hoping to see some cooling of the labor market.
"Wage hikes are slowing. That ultimately might be the best result," said Steve Sosnick of Interactive Brokers. "People stay employed but as an economy, we're not seeing immense wage pressure."
According to FactSet, economists expect CPI rose by 0.4% in February, or 6% on an annualized basis. That compares to a 0.5% gain in January, or 6.4% year-over-year. Strategists said investors want to see that the trajectory of inflation continues to be lower.
"It will be the last CPI report before the Fed meeting, and I think that will be a key market mover and set the tone for the market and volatility next week," said Michael Arone, chief investment strategist at State Street Global Advisors. Arone expects the Fed to raise rates by a quarter point, but a very hot number could boost expectations for a half percentage point hike.
The market was pricing in just a 30% chance for a half percentage point increase on Friday morning.
— Patti Domm
More than 15% of S&P 500 hits new 52-week lows
About 16%, or 31 stocks, in the S&P 500 hit lows not seen in at least 52 weeks on Friday.
Here's the full list:
- Lumen Technologies (LUMN)
- Dish Network (DISH)
- Match Group (MTCH)
- Advance Auto Parts (AAP)
- Hasbro (HAS)
- Hormel (HRL)
- VF Corp. (VFC)
- Tyson Foods (TSN)
- Assurant (AIZ)
- Bank of America (BAC)
- Comerica (CMA)
- Fifth Third Bancorp (FITB)
- First Republic Bank (FRC)
- KeyCorp (KEY)
- Lincoln National Corporation (LNC)
- M&T Bank (MTB)
- PNC Financial Services Group (PNC)
- Signature Bank (SBNY)
- Charles Schwab (SCHW)
- Truist Financial (TFC)
- Zions Bancorporation (ZION)
- Baxter (BAX)
- Organon (OGN)
- Pfizer (PFE)
- 3M (MMM), which is also a component in the Dow
- Akamai Technologies (AKAM)
- Gen Digital (GEN)
- WestRock (WRK)
- Boston Properties (BXP)
- Dominion Energy (D)
No S&P 500 stocks hit new 52-week highs on Friday amid the broader market slide.
— Alex Harring, Christopher Hayes
Regional banks headed for worst week since 2008
Regional banks are on pace to cap off their worst week since 2008, with the SPDR S&P Regional Banking ETF last down more than 19% for the week.
If shares close at this level, that would mark the worst week for the KRE since October 2008, shortly after the start of the Financial Crisis, when Lehman Brothers declared bankruptcy.
As of 10:25 a.m. Friday, the KRE was down about 4%, led to the downside by declines from First Republic Bank, PacWest, Western Alliance and Signature Bank.
— Samantha Subin
Tech shares fall
Large cap tech names slid on Friday, with the S&P sector shedding 1%.
Microsoft shares slumped 0.7%, while Apple dropped 0.3%. The tech-heavy Nasdaq Composite was also the laggard among the three major indexes, declining 0.6%.
Chip stocks also took their lumps, with the iShares Semiconductor ETF losing 0.9%. Nvidia and Advanced Micro Devices fell more than 1% each.
Deposit outflows at Silicon Valley Bank are outpacing the sale process, sources tell David Faber
So far the sale process for Silicon Valley Bank doesn't appear to be going well.
CNBC's David Faber earlier reported that SVB Financial, parent of Silicon Valley Bank, is in talks to sell itself after attempts by the bank to raise capital failed.
The bank hired advisors to explore a potential sale, Faber reported before the bell, citing sources.
However, sources are now telling Faber that deposits outflows are so far outpacing the sale process, making it very difficult for a realistic assessment of the bank by potential buyers to take place, the sources told Faber.
Stocks open lower
Stocks opened lower Friday, pressured by falling bank shares.
The Dow Jones Industrial Average dropped 76 points, or 0.2%. The S&P 500 dipped 0.38% and the Nasdaq Composite fell 0.5%.
— Samantha Subin
SVB Financial mulls selling itself, large financial institutions considering purchase
SVB Financial, the parent company of Silicon Valley Bank is in talks to sell itself as attempts to raise capital falter, sources told CNBC's David Faber on Friday.
Large financial institutions are considering purchasing the financial institution, which plummeted more than 60% on Thursday after announcing plans to raise more than $2 billion in capital.
The stock was down about 63% premarket on Friday before trading was halted.
— Samantha Subin, Jesse Pound, David Faber
SVB issues unlikely a preview of wider banking issues, analysts say
Wall Street analysts were confident on Thursday night and Friday morning that the issues at SVB Financial would not spread throughout the banking sector, particularly among major banks.
"We believe the sell-off was overdone as large banks have a lot more liquidity than smaller banks, they are more diversified with broader business models, have a lot of capital, are much better managed in regards to risk, and have a lot of oversight from regulators," JPMorgan analyst Vivek Juneja said in a note to clients.
Read more insight from analysts at CNBC Pro.
— Jesse Pound
Tight labor market is "starting to loosen," says LPL Financial's Roach
The U.S. more jobs than expected in February, but rising unemployment and a slower-than-expected rise in wage inflation signals that tight labor market is "starting to loosen," said Jeffrey Roach, chief economist at LPL Financial.
Even so, don't be surprised if the Federal Reserve implements a larger hike at its next meeting.
"The demand for labor in the services sectors will likely be strong for the foreseeable future as consumers recalibrate spending habits to pre-pandemic norms," he wrote. "The tight labor market could push the Fed to hike rates by 0.50% at the next meeting since services inflation ex housing is not decelerating as fast as policy makers desire.
— Samantha Subin
More traders pricing in 25 basis point hike
More traders are pricing in a 25 basis point hike from the Federal Reserve when it meets this month following February nonfarm payrolls report.
About 56% of traders now expect a 25 basis point hike from the central bank, according to CME Group's FedWatch tool, as of 9:00 a.m. Friday.
Earlier in the week, more than 75% of trader had been betting on a 50 basis point hike after comment from Fed Chair Jerome Powell signaled higher rates for longer.
— Samantha Subin
Trading in SVB is halted
Trading in shares of SVB Financial were halted for pending news at 8:35 a.m., according to the NYSE website.
— Jesse Pound
U.S. payrolls grow by 311,000 as jobs market stays hot
The U.S. economy added 311,000 jobs in February, topping a Dow Jones consensus estimate of 225,000. The number comes as traders assess the possibility of higher interest rates for longer.
However, wages rose just 0.2% for the month. That's well below the Dow Jones forecast of a 0.4% increase.
— Jeff Cox
Stocks making the biggest moves premarket
These are the stocks making the biggest moves in early morning trading:
- SVB Financial — Shares of the company known as Silicon Valley Bank extended their big slide, falling more than 40% in early morning trading after the company Thursday announced a plan to raise more than $2 billion in capital to help offset losses on bond sales.
- Allbirds — Shares of the footwear retailer plummeted more than 22% after the company failed to post year-over-year quarterly sales growth for the first time in its history, and unveiled a broad transformation strategy and an executive shake-up.
- DocuSign — The electronic signature platform dropped nearly 14% after announcing CFO Cynthia Gaylor would step down later this year. The stock was also downgraded by JPMorgan to underweight from neutral.
For more movers check out our full list here.
— Tanaya Macheel
Ackman says government should consider SVB Financial bailout
In a Twitter thread later Thursday evening, billionaire investor Bill Ackman said the U.S. government should consider a "highly dilutive" bailout of SVB Financial as questions loom over the bank's financial position.
"The failure of [SVB Financial] could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash," the Pershing Square founder wrote in a Twitter thread Thursday. "If private capital can't provide a solution, a highly dilutive gov't preferred bailout should be considered."
He added that the government could also consider guaranteeing deposits in exchange for a dilutive warrant issuance, or other protections, to allow the bank to raise new capital.
"The risk of failure and deposit losses here is that the next, least well-capitalized bank faces a run and fails and the dominoes continue to fall," he wrote.
— Samantha Subin
SVB Financial falls another 40% premarket, weighs on banking sector
Shares of SVB Financial plummeted another 41% before the bell, falling for a second day and putting pressure on other financial stocks as fears mounted that more banks would incur heavy losses on their bond portfolios.
The SPDR S&P Regional Banking ETF fell 1% Friday following an 8% tumble on Thursday. The Financial Select SPDR Fund was down following a 4% decline on Thursday.
Signature Bank, which often deals with the crypto sector, was off more than 2% in premarket trading following a 12% tumble Thursday.
The premarket move in SVB Financial shares comes less than a day after the tech-focused bank stock lost more than 60% on plans to raise more capital to help offset losses in bond sales.
SVB boasted a market value of $16.8 billion at the end of last week. As of Thursday's close, the bank was worth about $6.3 billion, and on pace to drop again at the start of Friday trading.
Read more on the move in SVB Financial shares here.
— John Melloy, Hugh Son, Jesse Pound
SVB Financial down sharply again
Shares of tech-focused bank SVB Financial dropped another 40% in the premarket Friday, building on Thursday's 60% plunge. The stock was under pressure in the previous session after SVB Financial announced it planned to raise more than $2 billion in capital to help offset losses in bond sales.
The news also raised concern that other banks could be in similar trouble. However, analysts at Morgan Stanley think this is "highly idiosyncratic and should not be viewed as a read-across to other banks we cover."
Meanwhile, Wells Fargo said: "We believe there is a very low likelihood of capital at banks being threatened due to forced HTM sales at an inopportune time, unless customers of banks believe there is a threat to the banks' survival."
— Fred Imbert, Michael Bloom
Banking stocks drag on European markets following Silicon Valley Bank plunge
Banking stocks led losses in the pan-European Stoxx 600 at the start of trading, following in the footsteps of the dramatic U.S. bank stocks sell-off Thursday.
SVB Financial plunged 60% after it announced a plan to raise more than $2 billion in capital in an attempt to offset losses from bond sales.
The banking sector was the biggest negative mover as it shed 4.5% in early trade.
Deutsche Bank was down 7% in early trade, Barclays and Swedbank lost 5.5%, Commerzbank shed 5.4% and Societe Generale and HSBC dropped 5.3%.
— Hannah Ward-Glenton
European equity markets open lower
European markets opened lower Friday, led by a sell-off in the banking sector.
The pan-European Stoxx 600 market was down 1.4%, with most sectors and major bourses trading in negative territory. Bank stocks led losses, down 4.2% just after market open, followed by autos, which dropped 2.7%. Food and beverages and utilities bucked the trend and traded just above the flatline.
Bitcoin briefly dips below $20,000 in Asia's morning trade
Bitcoin dipped below the $20,000 mark in Asia morning trade for the first time since mid-January, reaching $19,840 before recovering back above the psychological threshold.
The cryptocurrency fell 7.36% in the past 24 hours, according to CoinMetrics and last stood at $20,115.53.
Ethereum also fell 6.92% in the past 24 hours and last traded at $1,431.81.
— Jihye Lee
Hang Seng index losses led by consumer cyclicals, healthcare, technology stocks
The Hang Seng index in Hong Kong saw sharp losses on Friday morning, led by consumer cyclicals that fell 3.77%, healthcare stocks shed nearly 3% and technology stocks dropped 1.56%.
JD.com fell 11.04% while Geely Automobile shed 5.49%. BYD lost 5.2% and Baidu shed 4.94%.
Property stocks such as Country Garden also saw huge losses down 2.73%.
Alibaba was among the leading bottom movers, falling 2.96%.
— Jihye Lee
Japan approves Kazuo Ueda's appointment as next Bank of Japan governor: Kyodo
Japan approved the appointment of Kazuo Ueda as the next governor of the Bank of Japan, Kyodo reported.
The approval by the House of Councillors sets the stage for the government to formally appoint Ueda, Kyodo reported.
The parliament also approved Shinichi Uchida and Ryozo Himino as the next Bank of Japan deputy governors, Kyodo said.
The yield on 10-year Japanese government bonds slightly fell to the upper ceiling of the central bank's tolerance range at 0.5%.
— Jihye Lee
Strong hiring and wage growth expected in February
Economists expect data coming Friday before the bell to show hiring remained strong in February and that wages grew faster than they did in the prior month.
Economists polled by Dow Jones forecast 225,000 new jobs were added in February, which would be lower than January's surprisingly large addition of 517,000 jobs.
The unemployment rate, meanwhile, is expected to stay at 3.4%, which is a low not seen since 1969.
And economists anticipate average hourly earnings will rise by 0.4% from January for a 4.8% year-over-year. That is more than the prior month, which brought a 0.3% month over month and 4.4% annualized increase.
— Patti Domm
Major indexes are on track for weekly losses
With one session left in the trading week, the three major indexes are on poised to end the week down.
The Dow is on pace for the biggest weekly loss, down 3.4%. The S&P 500 slid 3.15% so far, while the Nasdaq Composite has dropped 3%.
— Alex Harring
Stocks making the biggest moves after hours
These are some of the stocks making the biggest moves in extended trading:
- SVB Financial — Shares slid 6% after the bell, continuing to plunge from Thursday's session following an announcement from the financial services company that it was looking to raise more than $2 billion in capital to help offset losses from bond sales.
- Oracle — The information technology company dropped 4.9% after beating analysts' expectations on earnings but missing on revenue for its third quarter. The company also increased its quarterly dividend to 40 cents from 32 cents.
- Gap — The retailer tumbled 7% after missing on both the top and bottom lines in the fourth quarter. Gap said to expect its first quarter and full-year revenue to decrease year over year despite analysts expecting both to show modest annualized gains.
- Ulta — The beauty retailer slid 2.1% despite beating analysts' expectations for both the top and bottom lines, according to Refinitiv, and issuing upbeat forward guidance.
— Alex Harring
Stock futures open lower
Stock futures were lower Thursday night.
Futures tied to the Dow were down 66 points, or 0.2%, shortly after extended trading began. Nasdaq-100 and S&P 500 futures slipped 0.4% and 0.3%, respectively.
— Alex Harring