Shares of banks and other financial institutions fell sharply as the sector continued to track swirling volatility in global stock and bond markets.
Investors are struggling to get their arms around what the confluence of rising inflation and an increasingly gloomy short-term economic outlook means for interest rates and stock markets.
"The Fed all of a sudden can't be as dovish as in the past 20 years because inflation is the highest in 30 years," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund. "So there is still the Fed 'put,' but it's lower than in the past."
The yield on the 10 year Treasury note tumbled after a lackluster November jobs report.
Troubled Chinese property concern China Evergrande Group warned it risked defaulting on a large financial obligation and sought help from its provincial government.
German insurer Allianz said its U.S. life insurer had reached an agreement to reinsure liabilities of $35 billion, in one of the largest transactions of its kind.
Write to Rob Curran at firstname.lastname@example.org
(END) Dow Jones Newswires