Stock Market Slides On New Bank Fears After JPMorgan Bank Crisis Comments

The major stock market indexes continued to fall at midday on Tuesday, trading close to the day's lows. After months of Fed tightening, the labor market has finally shown signs of slowing.

The Dow Jones fell by 0.8%. The Nasdaq fell 0.5%, while the S&P500 declined 0.7%. The iShares Russell 2000 ETF(IWM) was the biggest loser, falling 2%.

NYSE volume dropped while Nasdaq increased compared to the same time Monday.

The Nasdaq-100 tracking Invesco QQQ trust ETF (QQQ), which tracks the Nasdaq index, fell by 0.3%. The Innovator IBD50 ETF (FFTY), which tracks the Nasdaq 100, fell 1.3%.

Crude oil fell 0.3% to $80.13 a barrel. Bitcoin fell 0.3% to $28,175.

After weak employment data, the 10-year U.S. Treasury Yield fell 9 basis points to 3.34%.

Gold futures rose 1.9%, reaching a new 2023 high of $2,038 an ounce. The SPDR Gold Trust ETF GLD rose 1.8% with the yellow metal.

CME FedWatch shows that there is a 40% chance of a rate increase by a quarter point at the meeting on May 3.

The European stock market was mixed. The German DAX rose 0.1%, while the Paris CAC remained relatively unchanged. In afternoon trading, the London FTSE fell 0.5%.

The consensus was for a 0.4% decline in February factory orders. This data examines the dollar value of new orders both for durable and nondurable products.

The Job Openings and Labor Turnover Survey for February (JOLTS), which was lower than the 10.824 million job openings in January, came out at 9.931 versus 10.4 million projected. The labor market has finally slowed down after a long wait.

Bank Stocks Retreat As VIX Rises

In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon discussed the recent banking crisis. This caused regional bank stocks to suffer on Tuesday.

Mr. Dimon assured his readers that this situation was not the same as the financial crisis of 2008, but he insisted it "wasn't yet over" and will have "repercussions years from now."

Some of the harshest comments were "this wasn't a great time for many players" and "most risks were hidden in plain view."

The S&P Volatility Index VIX soared 7.5%, reaching a new weekly high. This indicates a rise in fear levels.

KeyCorp (KEY), U.S. Bancorp, PNC Financial Services, PNC, and Fulton Financial all suffered losses.

JPM's stock performed slightly better than regional bank stocks, but fell 1.9%.

(AVAV), a robotics and defence stock, soared over 13% in a single day after Raymond James upgraded it to'strong buy' from 'outperform' and raised the price target from 105 to 130.

The stock of Etsy (ETSY), an online marketplace, jumped 2.4% on Tuesday after Piper Sandler upgraded it to overweight from neutral. It also raised its price target from 130 to 140.

Chipotle (CMG), a fast food chain, gained 1%. It broke through a cup-base and reached the buy point of 1,724.81.

PagerDuty, a cloud computing stock, reversed its course and fell 0.7%. PD retreated from the 5% zone of a base with a handle cup, reaching 39.76. PD was the IBD 50 Stocks to Watch selection for Monday.

Hess, an IBD 50 company, has pulled back 2.7% following Monday's rally of 8.4%, triggered by OPEC’s unexpected announcement to cut output. Energy producer Hess (HES) is ranked second in the Integrated Oil & Gas industry group. This has dropped to a pathetic 139th place out of 197 IBD industries groups.

Marathon Oil (MRO), after a nearly 10% rise on Monday, gave back 3.2%. MRO is at a double bottom base, with a buy point of 29.95.

Stock Market: Footwear Stocks Pops

Burlington Stores' (BURL), a discount retailer, rose 0.5% following Loop Capital's upgrade to Buy from Hold and raising its price target from 220 to 225.

According to MarketSmith's pattern recognition, Swiss footwear retailer On added 3.4%. This triggered a power pivot signal. The flag indicates a movement of at least 20 percent from the purchase point within 15 days or 3 weeks. These rallies indicate exceptional market performance.

After On's Q4 earnings report was released, the IBD 50 stock soared by over 26%. Analysts expect EPS to grow by 30% annually in 2023, and 42% annually in 2024.

NorthCoast Research has downgraded Boeing (BA) from neutral to sell.