The Dow ended the week on a sour note, though other indexes didn't fare as badly. The Dow fell 234 points on the day to 32,627, while the S&P 500 dropped 2 points to 3,913, and the Nasdaq rose 99 points to 13,215. Bank stocks in particular had a rough day after the Federal Reserve announced it would end some emergency measures put into place for the industry last year to help deal with the pandemic, per the AP. For example, it will restore some of the capital requirements for big banks that were suspended in the early months of the pandemic to give banks flexibility. The banking industry had hoped those measures would be extended. Citigroup fell 0.8%, while Bank of America fell 1.3% and JPMorgan Chase slid 2.7%.
The announcement briefly raised concerns about more bond selling, but those fears have been tempered, said Barry Bannister, chief equity strategist at Stifel. “Overall, the very near term concerns are going back to some of the bigger picture questions,” he said. “How high can yields go and what does that mean for stock valuations.” The yield on the 10-year US Treasury note slipped to 1.72% from 1.73% late Thursday, easing off its continued climb. The security is used to price a multitude of financial products, like the traditional 30-year mortgage, and higher interest rates have given investors some concern that it may slow economic growth. (Read more stock market stories.)