The Dow Jones Industrial Average ended lower on Tuesday due to weaker performances in the industrial and financial sectors, as well as fresh concerns over the banking industry. The Dow closed 0.59% lower, or 198 points, while the Nasdaq and S&P 500 also fell by 0.5% and 0.6%, respectively. The slump in financials was led by regional banks such as Zions Bancorporation, First Republic Bank, and Comerica. JPMorgan's CEO warned that the banking crisis was far from over, causing fresh jitters in the sector. Meanwhile, industrials, such as Caterpillar Inc. and United Rentals, Inc., also dragged down the broader market.
The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report also showed that job openings in February fell to about 9.9 million, missing expectations of 10.4 million. This data further added to concerns about the economy, just as Federal Reserve members continue to call for higher rates. The decline in job openings may also indicate a slowdown in labor demand, which could have implications for economic growth in the near future.
Energy stocks, which had been gaining in the previous day, also gave up their gains as investor focus shifted to the impact of a slowing global economy on crude demand. Marathon Oil Corporation, Phillips 66, and Valero Energy Corporation were among the biggest losers, with the latter falling more than 8%.
Lastly, Virgin Orbit Holdings fell 23% as the satellite launch company filed for Chapter 11 bankruptcy protection after failing to secure funding. The company had recently announced that it would cut most of its staff, and the bankruptcy filing highlights the challenging financial environment for businesses during the pandemic.
In summary, Tuesday's stock market saw weaker performances in the industrial and financial sectors, along with fresh concerns over the banking industry and a decline in job openings. Energy stocks also gave up their gains, while Virgin Orbit Holdings filed for bankruptcy protection. The overall picture suggests continued uncertainty and volatility in the stock market as the pandemic continues to affect businesses and the economy.
