Stocks were volatile on Friday after lender Silicon Valley Bank (NASDAQ: SIVB) failed and regulators have taken control of the bank's deposits, further pressuring the financial sector. Market participants also weighed higher-than-expected monthly jobs print for February. The Dow Jones Industrial Average (NYSE: DIA) tumbled over 300 points, while the S&P 500 Index (NYSE: SPY) and Nasdaq Composite (NASDAQ: QQQ) fell about 1.5% and 1.8%, respectively.
Here's how the market settled to close out the week:
S&P 500 Index (NYSE: SPY): -1.45% or -56.73 points to 3,861.59
Dow Jones Industrial Average (NYSE: DIA): -1.07% or -345.22 points to 31,909.64
Nasdaq Composite Index (NASDAQ: QQQ): -1.76% or -199.47 points to 11,138.89
Friday's moves led all three major averages to finish the week lower, with the Dow falling 4.44% for its worst weekly performance since June. The S&P 500 also lost 4.5%, while the Nasdaq dropped 4.7%.
In the spotlight on Friday, the Federal Deposit Insurance Corporation (FDIC) announced it has taken over Silicon Valley Bank after the lender failed to raise more than $2 billion in capital to offset $1.8 billion in losses from bond sales.
Regional bank stocks tumbled on the news, with the SPDR S&P Regional Banking ETF (NYSE: KRE) last down over 5%. Several bank stocks were also halted on Friday, including First Republic Bank (NYSE: FRC), PacWest Bancorp (NASDAQ: PACW) and Signature Bank (NASDAQ: SBNY). Big banks JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS) and Wells Fargo (NASDAQ: WFC) were also lower.
Elsewhere, February's jobs report came in above expectations on Friday. The U.S. economy added 311,000 jobs last month, slower pace than January's blowout revised print of 504,000 but above expectations of 225,000. The unemployment rate edged higher to 3.6% and wage growth rose 4.6% on a yearly basis, respectively above and below estimates.
Notable job gains were in leisure and hospitality, retail, government, and health care, while employment dragged in information, transportation, and warehousing, according to the Bureau of Labor Statistics.
The Federal Reserve has been looking for signs of weakness in the labor market as it works to cool down inflation. February's report showed continued strength, but a raising unemployment rate and slowing wage growth signal that higher interest rates may be undermining the tight labor market.
The central bank is expected to deliver a 0.25 percentage point increase to its benchmark interest rates later this month, with that probability rising over 70% on Friday, according to the CME Group. This smaller-than-previously-expected rate hike comes in response to increased pressure on the financial sector.