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Stocks added to losses Monday amid weakness in bank stocks caught in the downdraft of Friday’s margin call.
The Dow Jones Industrials remained lower 59.14 points to 33,013.74
The S&P 500 subtracted 16.74 points, to 3,957.80, from Friday’s record high.
The NASDAQ Composite retreated 129.05 points to 13,009.68.
Shares of ViacomCBS and Discovery sold off again after intense selling pressure last week. The two companies were believed to be hit by forced liquidation of positions held by the multibillion dollar family office Archegos Capital Management.
Discovery fell about 1%, while ViacomCBS dropped more than 5%. The two companies had lost 27% apiece during Friday’s selloff.
Elsewhere, Boeing was up 3% on news that Southwest Airlines had added 100 orders for the airliner’s 737 Max jet. The first 30 jets are scheduled for delivery in 2022.
Credit Suisse shares tumbled 13% as the bank warned it would face a "significant" hit to its first-quarter results due to the bank having to exit hedge fund positions related to the forced selling. Nomura also warned that it could get hit, sending its shares down nearly 15%.
Bank stocks weighed on the Dow industrials, with Goldman Sachs down more than 3% and JPMorgan Chase off 1.4%. The weakness came as government bond yields edged lower to start the week.
The Dow improved 6.9% and the S&P 500 has risen 4.3%, so far in March. The NASDAQ, however, has dipped 0.4% this month as some investors jumped high-flying technology names amid rising yields.
Investors are awaiting updates from President Joe Biden about his infrastructure plan which could cost north of $3 trillion. The president is expected to unveil his plan when he travels to Pittsburgh on Wednesday.
The stock market is closed for the Good Friday holiday, but the March jobs report is still slated for release that morning. Economists expect 630,000 jobs were added in March, and the unemployment rate fell to 6% from 6.2%, according to Dow Jones.
Prices for 10-Year Treasurys fell slightly, pushing yields higher to 1.69% from Friday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices recovered 16 cents to $61.13 U.S. a barrel.
Gold prices lost $22.50 to $1,712.20.
