Treasury yields dropped the most since 1987 after a 3-dey decline extended losses to the levels not seen in decades as investors grappled with what else financial regulators and the Federal Reserve bankers do not know.

Financial regulators and Treasury officials worked together to prevent the SVB fallout from spreading to other banks and keep the banking system stable. Despite the swift actions, future interest rate hikes are only going to exacerbate the situation for thinly capitalized banks with a higher percentage of uninsured deposit base.

The rapid demise of Silicon Valley Bank highlighted fragility of the banking system and inadequacies of the regulatory system. Investors shunned bank stocks in the US and Europe and major averages dropped 2%.

Major averages lacked direction after employers expanded payrolls at a brisk pace in February but wage gains moderated. Treasury yields plunged. About 15% of S&P 500 index stocks traded at new 52-week lows.

The S&P 500 and the Nasdaq Composite indexes fell 2% ahead of the closely watched nonfarm payroll report on Friday. Energy prices in New York and Europe declined.

Major averages meandered on rate path worries and kept investors on edge ahead of Friday's nonfarm employment report.

Private payrolls data suggested that despite multiple rate hikes the U.S. economy is standing strong and faster rate hikes may be needed to cool inflation to the long run average of 2%.



Stocks lacked direction and investors reviewed the latest private payrolls and international trade data. Tight labor market conditions are signaling faster rate hikes may be needed to cool inflation.

U.S. stocks accelerated declines and the yields on Treasury notes with maturities less than 2 years crossed 5% for the first time in 16 years.

Major averages struggled after hawkish comments from the Federal Reserve chairman suggested the likelihood of faster rate hikes and higher-than-previously anticipated terminal rates.

Tech rally lost steam after three hours of trading and Treasury yields rebounded. Natural gas prices plunged the most in three months amid forecasts of milder weather for the next two weeks.

Benchmark indexes jumped close to 1% ahead of the release of the Federal Reserve chairman Jerome Powell comments to lawmakers over the next two days and February jobs report on Friday.

Stocks reacted to the latest earnings from retailers and tech companies. Treasury yields traded volatile following comments from Fed policymakers as 10-year yields hover near 30-year bond yields.

Investors are grudgingly accepting the likelihood of interest rates moving higher and staying elevated longer than previously anticipated, a scenario dismissed by economists and traders only six months ago.



Treasury yields extended their recent gains and 6-month and 1-year inched higher above 5% and 10-year notes hovered near 1 3-month high of 4%. Stocks struggled but crude oil attempted a rebound after China's economic activities rebounded.