Shares of banks and other financial institutions fell sharply ahead of jobs data as an August rebound for global markets was in jeopardy because of renewed recession fears.

"Momentum indicators have turned bearish, and signs of defensive leadership have begun to emerge, pointing to more volatility ahead," said Adam Turnquist, chief technical strategist at brokerage LPL Financial, in a note to clients.

"Breakdowns in longer-duration Treasury yields, crude oil, and copper, along with a simultaneous breakout in gold, provide a warning sign of rising risks to an economic soft landing."

Bank of America has opened an internal investigation following allegations that bankers in Asia shared nonpublic information with investors before the bank sold hundreds of millions of dollars of stock.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

09-05-24 1724ET