Shares of banks and other financial institutions fell sharply, as hopes that financial markets were finding their footing were dashed.

Treasury yields have given back a chunk of their recent gains as safe-haven demand drives up government-bond prices, hurting the outlook for lending margins.

The broad S&P 500 slid 4% to the brink of a bear market. "Worries over inflation and a hawkish Fed are nothing new, but now add in worries over profit margins and the impact of inflation on the consumer and you have the recipe for a big down day," said Ryan Detrick, chief market strategist at brokerage LPL Financial, in e-mailed commentary.


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

(END) Dow Jones Newswires

05-18-22 1730ET