Dow closes nearly 400 points lower on Friday as First Republic and regional banks resume slide: Live updates

Stocks ended Friday's session lower.

The Dow was down 1.2%, while the S&P 500 ended 1.1% lower. The Nasdaq Composite shed 0.7%.

Despite the down session, the Dow was the only of the major indexes to close the week down. While the 30-stock index saw a weekly loss of 0.2%, the S&P 500 advanced 1.4% for the week and the Nasdaq Composite gained 4.4%.

— Alex Harring

First Republic Bank took another leg lower in afternoon trading, plunging more than 30% as investors positioned themselves in the final hour of trading this week. Friday's nosedive has brought the stock down more than 70% from where it started the week.

The drop has also weighed on the SPDR S&P Regional Banking ETF (KRE), which was down 6% on Friday and poised for a weekly loss of more than 14%.

— Alex Harring

Plans to funnel $30 billion worth of deposits into First Republic should restore confidence in the U.S. financial system, while mitigate the likelihood of future bank runs,

"We view the move by the industry as a positive step to stem contagion amid the regional bank crisis," wrote Evercore ISI's John Pancari in a Thursday note. "We believe the move sends a message of broader stability for the sector and should help further temper depositor fears," and enables the "bank to fight another day."

Read more on how analysts view the latest rescue plan here.

— Samantha Subin

The Dow notched a new low for the session as investors readied for the final hour of the trading day and week.

At one point shortly before 3 p.m. ET, the 30-stock index traded more than 500 points down. It's the only of the three major indexes on track for a weekly loss in what has been a volatile five sessions amid the bank crisis.

Meanwhile, the S&P 500 and Nasdaq Composite were down 1.2% and 0.8% entering the final hour, respectively. They are on track for weekly gains of 1.3% and 4.3%, respectively.

— Alex Harring

Crypto services firm Coinbase saw its shares jump 10% on Friday afternoon, pulling its weekly gain up to almost 40%.

The move followed a Bloomberg report that the company is exploring an overseas trading venue as regulatory scrutiny of crypto businesses ramps up in the U.S.

Shares have also gotten a boost this week from the rally in bitcoin, which continued its climb from earlier in the week. Although Coinbase has been working to diversify its revenue streams, fees from trading activity account for much of its revenue, and activity tends to pop when the bitcoin price rises.

— Tanaya Macheel

Charles Schwab said Friday its clients brought in approximately $16.5 billion in core net new assets over the past five trading days through Thursday.

The Westlake, Texas-based financial company saw its shares swing wildly this week amid fears that the banking crisis brought on by the Silicon Valley Bank collapse is spreading.

Shares are down 4.5% for the week. CEO Walt Bettinger as well as a slew of directors at Schwab scooped up shares of the company this week in what may prove a vote of confidence.

— Yun Li

The Federal Reserve's decision on whether to raise interest rates by 25 basis points or implement no rate hike at next week's policy meeting could depend on what happens in the coming days, said Nick Timiraos, chief economics correspondent at The Wall Street Journal.

The Fed is expected to approve a quarter-point, or 25 basis point, hike to interest rates at its meeting next week. But market observers say the central bank's next decision on interest rates has been made less certain over the past week amid the bank crisis.

"I'm hearing the same thing everybody else is hearing, which is that there's a case to be made for going by 25 and there's a case to be made for skipping," he said on CNBC's "The Exchange." "I think it really depends ... on what happens with the state of the markets and this financial instability risk over the next few days."

— Alex Harring

Bumble's stock gained 4.5% after Citi initiated coverage of the dating app stock with a buy rating.

"Most importantly to us is that the core Bumble app has seen continued share gain within the online dating world, and recent product launches are leading to better conversion of paid users as well," wrote analyst Ygal Arounian.

Read more on the call from Citi here.

— Samantha Subin

Check out the companies making headlines in midday trading. 

Warner Bros Discovery — The media company gained 2% after Wells Fargo upgraded the stock to overweight from equal weight. The firm said it liked the company's debt reduction efforts.

FedEx — The shipping company saw its stock jump over 8% after the company's fiscal third-quarter earnings topped analysts expectations.

Sarepta Therapeutics — The pharmaceutical name dropped nearly 20% after regulators said it will hold an advisory committee meeting for its SRP-9001 treatment for Duchene muscular dystrophy.

Bumble – Shares of the dating app jumped 3% after Citi initiated coverage of the company with a buy rating, and said the stock could rally more than 20% as it captures market share.

See the full list here.

— Yun Li

Financial stocks have been the talk of Wall Street this week as investors have attempted to position themselves amid the banking crisis. But within the S&P 500, they aren't the worst performing stocks this week.

With a few hours left in the trading week, energy stocks within the broad index are down nearly 7% on the week. That's the biggest drop of any of the index's 11 sectors. Halliburton, Devon Energy and Schlumberger NV have all weighed on the sector with week-to-date losses of 12%.

Financials have performed the second worst over the course of the week, down 5.8%.

In all, just four of the index's 11 sectors are on pace to post losses this week. The S&P 500 as a whole, meanwhile, is slated for a gain of around 1.5% for the week.

On the other hand, communication services is poised for the best weekly performance despite trading down in Friday's session. The move comes as investors bet that technology and other growth stocks could benefit if the banking crisis pushes the Federal Reserve to avoid a 50 basis point interest rate hike. Growth stocks are typically expected to perform better with lower interest rates.

Google parent Alphabet and Facebook parent Meta have led the sector up this week, with advances of more than 12% and 10%, respectively.

— Alex Harring

Bank of America analysts said recent banking sector volatility could be bad news for the auto industry. It expects banks to tighten lending standards, which will make it harder for consumers to drive off in a new car. The firm was expecting auto sales this year to be in the range of 14.2 million, or a 4% gain from 2022. However, if a credit crunch develops that forecast is at risk.

"Auto loans performance is slightly better than pre-pandemic, but credit quality differs between prime and non-prime borrowers, and non-prime delinquencies are 20% above pre-pandemic levels," they wrote, adding that banks will tighten underwriting standards as loan demand falls.

At the moment, the financing units of the major auto companies have access to the debt markets, but higher rates could mean weaker cash fow and earnings ahead, they said.

—Christina Cheddar Berk

Retail investors bought financial stocks in unpresented amounts over the past week, ending Wednesday, according to Vanda Research.

The banking sector's slump in the wake of Silicon Valley Bank's failure, along with concerns over Credit Suisse's financials, had retail investors turning to "traditional 'to-big-to-fail' banks," Vanda Research's senior vice president, Mario Iachini, wrote in a note Thursday.

They have experienced "a surge in retail investors' purchases of their stock as fears of more bank failures are hitting smaller, regional banks hard," he added.

To see what banks retail investors are buying — and how much— read the full CNBC Pro story here.

— Michelle Fox

Shares of Warner Bros Discovery gained 2% after Wells Fargo upgrades shares to overweight, citing increased confidence in its debt reduction efforts.

"We've stress tested the downside and expect WBD to succeed in deleveraging, and at a modest multiple that's what should create the equity upside," wrote analyst Steven Cahall in a Friday note.

Read more on the upgrade from the Wall Street firm here.

— Samantha Subin

Some Big Tech names rose on Friday, bucking the broader market downtrend as a drop in regional bank stocks spooked investors on Wall Street.

Some of those outperformers included Alphabet and Microsoft, last up more than 1% each. Nvidia also gained 1% on the back of an upgrade to overweight by Morgan Stanley even as the tech-heavy Nasdaq Composite slid 0.9%.

Some investors have turned to Big Tech stocks in recent days, viewing the sector as a potential safe haven as they bet the crisis hitting the banking sector could stop the Federal Reserve from hiking rates next week, and in turn benefit growth names.

So far this week, Alphabet and Microsoft have gained more than 12% each, while Nvidia's surged 13%. Apple, Amazon, Meta Platforms and Tesla have risen between 3% and 8% this week despite falling during Friday's session.

— Samantha Subin

Art Cashin, director of floor operations at UBS, said on CNBC the market has jumped between extremes over the course of the week as investors switched between feeling oversold and overbought. He said it's important investors stay vigilant of unnecessary agitations to the market and advised them to "be careful" during Friday's trading session.

"Today's a good day to be careful," Cashin said on "Squawk on the Street." "Friday before a weekend, financial rumors around, so you ... have to be careful to avoid rumor mongers."

— Alex Harring

These are some of the stocks hitting new lows during Friday trading:

• Dish Network trading at lows not seen since March 2009
• Lumen Technologies trading at all-time lows back to the CenturyTel/Embarq merger that created CenturyLink in 2008
• Advance Auto Parts trading at lows not seen since May, 2020
• Newell Brands trading at lows not seen since May 2020
• Hormel trading at lows not seen since May 2019
• Allstate trading at all-time lows not seen since Dec 2021
• Bank of America trading at lows not seen since Nov 2020
• Centene trading at lows not seen since October 2021
• Alexandria Real Estate Equities trading at lows not seen since March 2020
• Boston Properties trading at lows not seen since July 2009
• Camden Property Trust trading at lows not seen since March 2021

 Some stocks, however, bucked the broader market downtrend. These names notched new highs:

• Hershey trading at all-time high levels back through our history to 1972
• NVR, Inc. trading at levels not seen since February 2022
• Marketaxess Holdings trading at levels not seen since January 2022
• Cadence Design Systems trading at all-time high levels back to when ECAD, Inc went public 1987

— Samantha Subin, Chris Hayes

Friday's drop to the Dow has pulled the index into negative territory for the week.

After shedding more than 400 points at its low, the Dow's week-to-date return moved from slightly above the flatline to down more than 0.1%.

Despite the S&P 500 and Nasdaq Composite also sliding in Friday morning trading, the two indexes are still up around 1.6% and 4.5% for the week.

— Alex Harring

The University of Michigan's consumer sentiment index fell to 63.4 in March, from 67 last month as inflation expectations remained elevated.

"Year-ahead inflation expectations receded from 4.1% in February to 3.8%, the lowest reading since April 2021, but remain well above the 2.3-3.0% range seen in the two years prior to the pandemic," noted Surveys of Consumers director Joanne Hsu. "With ongoing turbulence in the financial sector and uncertainty over the Fed's possible policy response, inflation expectations are likely to be volatile in the months ahead."

This also marked the first time in four months that the index fell.

"This month's decrease was already fully realized prior to the failure of Silicon Valley Bank, at which time about 85% of our interviews for this preliminary release had been completed," Hsu said.

— Fred Imbert

The NASDAQ 100 is up over 6% this week, putting it on track for its best week of the year since Nov. 11, 2022 when the index gained 8.84%.

The NASDAQ 100 has also outperformed the S&P 500 for 11 consecutive days through Thursday's close. This marks its longest streak of outperformance since July 24, 2017 when the outperformance of the Nasdaq 100 over the S&P 500 lasted for 14 days.

— Hakyung Kim, Gina Francolla

The major indexes were down as trading kicked off.

The Dow was down 0.6%, while the S&P 500 lost 0.3% and the Nasdaq Composite shed 0.2%.

Still, all three are on pace for gains this week.

— Alex Harring

Good news for contrarians. Individual investor sentiment on the outlook for stocks fell to a six-month low — and the degree of pessimism jumped — in the latest survey by the American Association of Individual Investors.

Expectations that stocks will rise in price over the next six months dropped 5.6 percentage points to just 19.2%, the lowest since last September, AAII said, adding that "bullish sentiment is at an unusually low level for the fourth consecutive week and the 44th time out of the past 63 weeks." Sentiment is also below the historical average of 37.5% for the 67th week out of the past 69.

Bearish opinion climbed 6.7 points to 48.4%, and is above its historical average of 31.0% for the 64th week out of the past 69.

AAII said the latest survey period included the failure of both Silicon Valley Bank and Signature Bank and the turmoil surrounding the future of Credit Suisse. In a special question this week about whether or not stocks were fairly valued, only 12.3% of individual investors thought stocks were undervalued, with 24.6% saying they were overvalued. The rest thought they were either fairly valued or mixed.

Why's this good for contrarians? AAII says that historically the S&P 500 has gone on to post above-average and above-median returns during the six- and 12-months following unusually low bullish readings and high bearish readings.

The news was less bleak from the weekly Investors Intelligence survey of financial newsletter editors, where bullish opinion dropped to 40.3% from 45.2%, and bears rose to 27.8% from 24.7%.

— Scott Schnipper

Major U.S. bank stocks fell on Friday, less than a day after joining forces to funnel $30 billion worth of deposits into First Republic.

Bank of America, Wells Fargo, Citigroup and JPMorgan Chase said Thursday they would contribute about $5 billion apiece to First Republic as part of the rescue plan. Goldman Sachs and Morgan Stanley agreed to provide around $2.5 billion each.

Shares of Bank of America, JPMorgan Chase, Morgan Stanley, Citigroup and Goldman Sachs were last down about 2% each. Wells Fargo dipped about 2.4%.

Truist Financial and State Street fell about 3% each before the bell, while PNC, Bank of New York Mellon and U.S. Bancorp lost 2%. All five financial institutions said they would deposit about $1 billion each to First Republic.

Meanwhile, U.S.-listed shares of Credit Suisse dropped nearly 8% as traders considered the emergency liquidity plan.

— Samantha Subin

A slew of regional bank stocks fell before the bell Friday, led to the downside by a roughly 20% drop in shares of First Republic.

The losers included PacWest and Western Alliance, last down about 10% and 8%, respectively. Shares of Zions Bancorp lost about 5%, while the SPDR S&P Regional Banking ETF (KRE) slumped 3.3%.

The fall in bank shares comes even after the sector rebounded on Thursday as 11 major U.S. banks struck a deal to rescue First Republic by pledging $30 billion in deposits.

— Samantha Subin

Wedbush Securities slashed its price target on shares of First Republic to $5 a share, saying in a Friday note that a takeover would likely clear any equity value for shareholders.

Analyst David Chiaverini downgraded shares to neutral from an outperform rating, saying "a distressed M&A sale could result in minimal, if any, residual value to common equity holders owing to FRC's significant negative tangible book value after taking into account fair value marks on its loans and securities."

Shares fell about 20% before the bell.

Read the full call from Wedbush Securities here.

— Samantha Subin

Check out the companies making headlines in premarket trading.

FedEx — Shares were up 11.6% after the company's fiscal third-quarter earnings topped analysts expectations. FedEx reported adjusted earnings of $3.41 per share, topping a Refinitiv consensus forecast of $2.73 per share. The company also raised its earnings forecast for the full year.

Credit Suisse — The Swiss bank's U.S.-traded shares were down almost 7% during premarket trading. Credit Suisse shares have had a volatile week after its largest investor announced it would not provide additional funding to the bank. The stock briefly rallied on Thursday after Credit Suisse announced it would borrow up to $50 billion francs ($54 billion) from the Swiss National Bank. Shares are down almost 29% year to date.

Nvidia – The chip stock gained more than 2% before the bell following an upgrade to overweight by Morgan Stanley. The Wall Street firm cited continued tailwinds from the growing push toward artificial intelligence.

Check out the full list here.

— Hakyung Kim

Credit Suisse's U.S. shares lost nearly 7% in extended hours as investors parsed through details of a plan for the bank to borrow up to $50 billion francs, or nearly $54 billion, from the Swiss National Bank amid the banking crisis.

The premarket slide of U.S.-listed shares follows a close Thursday that was unchanged from where it started the session.

Meanwhile, Credit Suisse's international shares traded lower Friday.

— Alex Harring

Despite a prior rally after a group of banks said they would aid First Republic with $30 billion in deposits, shares were lower in the premarket.

First Republic lost 11% in extended trading. That marks a turn from Thursday's session, when the stock gained nearly 10% on the news.

— Alex Harring

FedEx shares jumped 11% in the premarket after the package delivery giant posted fiscal third-quarter results that beat analyst expectations. The company also raised its full-year earnings guidance.

"We've continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year," CEO Raj Subramaniam said in a statement.

— Fred Imbert

Morgan Stanley analyst upgraded Nvidia shares to overweight from equal weight, citing relentless excitement around artificial intelligence.

"Having been EW for a large move in the stock, we still see indications that [large language model] enthusiasm is turning into stronger spending both near term and long term; we have been too data point oriented around a positive bigger picture, but the narrative is too strong to remain on sidelines," he wrote in a note.

CNBC Pro subscribers can read more here.

— Samantha Subin

European markets opened higher Friday, after Credit Suisse and First Republic Bank received financial help designed to prevent a crisis in the banking sector.

The pan-European Stoxx 600 index opened 0.8% higher, with all sectors and major bourses trading in positive territory. Oil and gas led the rally with a 1.9% uptick, followed by mining stocks, which were up 1.4%.

— Hannah Ward-Glenton

European equity markets are expected to open higher across the board.

The U.K.'s FTSE index is expected to see a 45 point increase to 7,454.7, according to IG data, while the DAX will jump 32.5 points to 15,030.9. France's CAC is anticipated to increase 23.5 points to 7,066.1 while Italy's MIB will gain 150 points to reach 25,621.5.

— Hannah Ward-Glenton

Shares of First Republic fell 18% in extended trading, erasing the afternoon rally sparked by a $30 billion deposit plan announced by the country's biggest banks.

While the move gives First Republic a significant cash pile, the bank did announce after the bell that it had borrowed tens of billions of dollars from the Federal Reserve and the Federal Home Loan Bank over the past week. Outflows of deposits have now "slowed considerably," the bank said.

First Republic also announced that it was suspending its common stock dividend.

— Jesse Pound

Check out the companies making headlines in extended trading.

FedEx — The package-shipping company's shares were up 9% after it reported a beat on earnings in its fiscal third quarter and raised its earnings forecast for the full year. FedEx reported adjusted earnings of $3.41 per share, topping analysts' estimates of $2.73 per share, according to Refinitiv. Meanwhile, the company's revenue fell below expectations. FedEx posted $22.17 billion in revenue, while analysts had estimated $22.74 billion. Shares of United Parcel Service popped 2% in sympathy.

First Republic Bank — The bank's shares were down 15% during after-hours trading. During the regular trading session, the stock reversed earlier losses and rallied almost 10% as a group of 11 banks, including Bank of America and Goldman Sachs, agreed to deposit $30 billion in First Republic. Shares of Zions Bancorp and KeyCorp, which are among the regional banks facing a rough week, fell more than 2%.

Check out the full list here.

— Hakyung Kim

U.S. stock futures opened flat on Thursday night.

Dow Jones Industrial Average futures fell by 11 points, or 0.03%. S&P 500 and Nasdaq 100 futures dipped 0.07% and 0.11%, respectively. 

— Hakyung Kim