© Reuters.
Investing.com -- The S&P 500 slipped Thursday as fresh turmoil in the banking sector weighed on investor sentiment ahead of Apple quarterly results due after markets close.
The S&P 500 was down 0.8%, the Dow Jones Industrial Average fell 1%, or 345 points lower, and the Nasdaq slipped 0.5%.
A trio of regional banks including Western Alliance Bancorporation (NYSE:WAL), First Horizon National Corporation (NYSE:FHN), and PacWest were nursing heavy losses as concerns the latter may on the brink of collapse sparked fresh concerns about troubles in the banking sector.
PacWest Bancorp (NASDAQ:PACW) fell more than 40% on reports that the regional bank was exploring strategic options including a possible sale. The bank confirmed that it was evaluating all options, though said it hasn’t experienced any out of ordinary outflows in deposits.
The move comes just days after JPMorgan acquired First Republic as part of receivership deal after latter failed to secure funding privately.
“While many thought JPM's purchase of FRC out of receivership would stop the "who's next?" conversations, investors are clearly continuing to focus on remaining players that are deemed the weakest,” UBS said in a note.
Big tech, meanwhile, traded mix ahead of Apple Inc (NASDAQ:AAPL)'s quarterly results due after markets close, with many eager for an update on how iPhone sales have held up amid slowing global growth.
Qualcomm (NASDAQ:QCOM), meanwhile, fell more than 5% as its better-than-expected quarterly results were overshadowed by guidance that missed Wall Street estimates amid a slow recovery in China.
Paramount was also big lower on the earnings front, plummeting more than 20% after the entertainment company slashed its dividend and its earnings fell short of expectations.
The bank-driven struggles on Wall Street offset optimism about a likely Fed pause in June.
“The FOMC hiked 25bp to a peak rate of 5.1%, then moved into a conditional pause we expect to be lengthy,” Morgan Stanley said in a note.
In other news, Johnson & Johnson (NYSE:JNJ)'s consumer health spinoff Kenvue surged Thursday after making its debut on the New York Stock Exchange.
On the economic front, there was more evidence of cooling in the labor market as jobless rose more than expected.
The rise in jobless claims come just a day ahead of the monthly jobs report expected to show the economy created 180,000 jobs in April.
