Market Highlights

Stocks extended declines as doubts over the credit health of regional US banks drove traders to cut down on risk, capping a volatile week that exposed the vulnerability of markets near record levels. Gold and bonds were major beneficiaries as investors rushed for havens. The S&P 500 headed for a second day of losses, with futures down 1.2% after two regional banks said they were victims of suspected fraud on loans tied to distressed property funds. European and Asian markets mirrored the US selloff. A gauge for European banking stocks fell more than 2%. Benchmark US bonds were set for their best week in more than a month, with 10-year yields falling another four basis points to 3.94% on Friday. Gold extended its record rally beyond $4,350 an ounce, while the yen and Swiss franc led gains among major currencies against the dollar.