The stock market major indexes closed off the lows of the day but lower. Continued concerns in the banking sector weighed on the market, as First Republic Bank stock lost over two-thirds of its value this week.
NYSE volume was higher and Nasdaq volume was considerably higher than the same time on Thursday, in preliminary numbers. Volume often picks up due to quadruple witching, which occurred today. The quarterly event happens with the simultaneous expiration of stock options, stock index futures and stock index options and futures all on the same day.
The Dow Jones Industrial Average fell 1.2% as the S&P 500 faded 1.1%. The Nasdaq composite gave back 0.7%. The Russell 2000 got hit the hardest, down 2.7% and still hurt by weakening regional banks.
The S&P 500 tested resistance at the 200-day moving average, while the Nasdaq held above that critical level.
Despite the turbulence, the S&P 50 gained 1.4% for the week, while the Nasdaq composite rose 4.4%. The Dow couldn't eke out a gain and closed down 0.2% for the week.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF trimmed 0.5%. The Innovator IBD 50 ETF fared worse than the major stock market indexes, down 1.3%.
The 10-year U.S. Treasury yield fell 19 basis points to 3.40%.
The CME FedWatch Tool now expects a 63% chance of a 25-basis-point rate hike at next week's Fed meeting. Nearly 37% expect no change in rates.
Crude oil dropped 2.9% to $66.57 per barrel. A loss of nearly 13% made it the worst week for U.S. crude since June, according to Dow Jones Market Data.
Bitcoin futures rallied 7.4% to $26,935.
Stock Market Today: Baidu Stock Up 27% This year
Although some stocks may show buy signals, investors should be cautious about buying. IBD classifies the current market as being in a correction.
Nvidia gapped up 0.7% after Morgan Stanley upgraded the chip stock to overweight from equal weight and raised the price target to 304 from 255. NVDA has gained over 78% this year and is one of the main reasons for the sector's strength.
FedEx gapped up 8% in heavy volume, passing the 217.48 buy point of a flat base. Shares are in the 5% buy zone. Shares popped after the delivery company reported better-than-expected fiscal Q3 earnings and raised its full-year EPS guidance late Thursday. FDX is the S&P 500's biggest gainer today.
Baidu gapped up 6.3% and is back above the 50-day line. The jump came after the China-based company announced it became the first provider allowed to run a fully driverless robo-taxi service in Beijing.
Sarepta Therapeutics gapped down 18% in heavy volume. It is well below the 50-day line. The move triggered a round-trip sell signal as SRPT gave back all gains from a 134.18 buy point. The Food and Drug Administration said it would hold an advisory committee meeting to discuss Sarepta's muscular dystrophy gene therapy.
Banks Face More Concerns; FRC Sinks Again
First Republic Bank plunged 32.8% after rebounding 10% Thursday, on news late Thursday that the strained bank will suspend its dividend. Shares closed down over 71% for the week.
JPMorgan Chase fell 3.8% and Goldman Sachs dropped 3.7%, leading the Dow's losers. They are part of a group of 13 banks that will invest $30 billion to aid failing First Republic Bank.
SVB Financial, the parent of Silicon Valley Bank, filed for Chapter 11 protection on Friday, and represents the largest bank bankruptcy filing since Washington Mutual in 2008, according to the Wall Street Journal. Shares have been halted from trading since March 9.
The SPDR Select Regional Bank ETF pulled back 6%. The SPDR Select Financial ETF fell 3.2%.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
