Stock market today: Live updates

Europe bank regulators remained on sidelines after SVB, says CLS Bank International's Dino Kos

Stocks recovered some of their earlier session declines Friday as Deutsche Bank shares pared back some losses.

The Dow Jones Industrial Average declined 48 points, or 0.1%. The S&P 500 dipped 0.2%, while Nasdaq Composite was 0.2% lower.

Deutsche Bank‘s U.S.-listed shares slid about 4.8% after the the German lender’s credit default swaps jumped, but without an apparent catalyst. The move appeared to raise concerns once again over the health of the European banking industry. Earlier this month, Swiss regulators forced a UBS acquisition of rival Credit Suisse. Deutsche Bank shares traded off their worst levels of the session, which caused major U.S. indexes to also cut their losses.

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Deutsche Bank shares 1-day

Shares of major U.S. banks were under pressure. Citigroup and Bank of America shares fell more than 2%. JPMorgan Chase and Wells Fargo shares fell more than 1% each.

“The Silicon Valley Bank problem brought more attention on banks,” Larry McDonald, founder of the Bear Traps Report, said Friday on CNBC’s “Squawk Box.” “And so, banks like Credit Suisse and Deutsche Bank that have been horribly, horribly managed for decades — and we’re talking about really poor management and horrible decisions — all of a sudden, investors around the planet, focus on that.”

European Central Bank President Christine Lagarde tried to ease concerns, saying euro zone banks are resilient with strong capital and liquidity positions. Lagarde said the ECB could provide liquidity if needed.

Wall Street is coming off a volatile session Thursday that ultimately ended with the major averages posting solid gains. The Nasdaq Composite posted the largest gain, at 1%, as technology shares continued to rally on a hunch that interest rate hikes would be coming to an end. The S&P 500 ended around 0.3% higher, while the Dow finished up 0.2%.

For the week, the Dow and S&P 500 are slightly higher, while the Nasdaq has gained roughly 0.9%.

Investors continued to assess the Fed’s latest policy move announced this week. The central bank hiked rates by a quarter-point. However, it also hinted that its rate-hiking campaign may be ending soon. Meanwhile, Fed Chair Jerome Powell noted that credit conditions have tightened, which could put pressure on the economy.

On Thursday, Treasury Secretary Janet Yellen said regulators are prepared to take more action if needed to stabilize U.S. banks. Her comments are the latest among regulators attempting to buoy confidence in the U.S. banking system in the wake of the Silicon Valley Bank and Signature Bank closures.

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