Indexes close with broad losses, bank stocks fall

Treasury bond prices fell after data from payroll firm ADP indicated that the US private sector added more jobs than expected in June. The two-year yield rose above 5%, while the ten-year yield rose above 4%, the highest level since March.

The Institute for Supply Management said Thursday its index of services activity rose from 50.3 in May to 53.9 in June, fueling fears of higher interest rates for longer.

The moves mean that investors will be following the Labor Department’s June jobs report, due Friday, even more closely than usual.

US stocks fell. The S&P 500, Dow Industrials and Nasdaq Composite all fell, with the blue-chip Dow down 1.1%, or 366 points.

All 11 S&P 500 sectors fell. The communications services sector fell about 1%; it includes Meta Platforms, which faltered in trading on Thursday after the launch of Threads, a Twitter competitor.

The PHLX Semiconductor Sector Indexone of the better performers of the year, was down more than 1%.

Oil prices fell. Brent crude futures fell 0.2% to $76.52 a barrel. Traders are weighing the effects of production cuts by major producers, higher interest rates and geopolitical uncertainty, including Iran’s recent alleged attempts to seize tankers.

Foreign markets fell. The Stoxx Europe 600 fell more than 2%, with travel, leisure and real estate stocks weighing on the index. Asian markets were hit hard. The Japanese Nikkei 225 fell 1.7%, while the Hong Kong Hang Seng lost 3%.