The major averages reverse course once again, giving up earlier gains, led by declines in bank stocks on worries about bad loans. The Dow Jones Industrial Average lost 301 points, or 0.6% after rising over 100 points this morning, to close at 45,952. The S&P 500 fell 41 points while the Nasdaq Composite fell 107 or 0.47% to settle at 22,562.

The weakness in the markets started with insurance stocks similar to yesterday led by Travelers today down nearly 3% on disappointing mix of earnings. The weakness spread to the financials, in particular, the regional banks like Zions and Western Alliance down 13% and 10% respectively.

 fell to their lows of the day as indexes rolled over. Zions plunged 13% after taking a sizable charge because of bad loans to a couple borrowers. Western Alliance dropped 11% after alleging a borrower had committed fraud. The banking industry has been on edge lately following the bankruptcies of two auto industry-related companies that have raised concerns about loose lending practices, especially in the opaque private credit market.

Interest rates moved lower today with the 10-year dropping below 4% once again, down 7 basis points to 3.97%, while that of the 2-year Treasury note decreased by 8 basis points to 3.42%. The 30-year bond yield fell more than 5 basis points to 4.58%.

In the commodity space, oil was lower again as India considers halting Russian oil imports. Gold continues to move higher to new all time highs as a safe haven while crypto currencies all fell 3% or more.

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