Stock Market Suffers Significant Losses After Two Key Events

On Friday, U.S. stocks experienced significant losses due to two major financial events: a stronger-than-expected February jobs report and the failure of Silicon Valley Bank (SIVB), the largest financial institution to collapse since the 2008 financial crisis. The S&P 500 and Dow Jones Industrial Average both fell by 1.4% and 1.1%, respectively, while the technology-heavy Nasdaq Composite declined by 1.8%.

This week was the worst for all three indexes since November. Bond yields also fell, with the benchmark 10-year U.S. Treasury note yield dropping to 3.68%. The jobs report revealed the addition of 311,000 jobs, which exceeded expectations, and slower wage growth than anticipated. Meanwhile, the Federal Reserve is considering a rate hike, and investors have expressed concerns about the central bank’s monetary tightening policy putting stress on the banking system, especially after Silicon Valley Bank’s failure.