us stocks were down slightly on friday afternoon after a surge in the cost of deutsche banks creditdefault swaps helped to reignite bankingsector worries that have rattled markets in recent weeks for the week the dow is heading for a 07 rise while the sp 500 was on track to gain 08 and the nasdaq was on pace to advance 09 according to factset data at last check us stocks were down slightly friday afternoon but still on track for weekly gains as worries over the banking system lingered bank concerns have cast a heavy cloud over the market with investors worried about weak links said yungyu ma chief investment strategist at bmo wealth management in a phone interview ma said he expects investors will be looking to sell potentially into any rallies until some of these clouds are lifted shares of germanys deutsche bank ag dbkxedropped friday after the cost of insuring the bank against a credit default jumped the banks creditdefault swaps rose to the highest level since late 2018 according to a reuters report friday as banking concerns weighed on stocks treasury secretary janet yellen announced friday she would call an unscheduled meeting of the financial stability oversight council or fsoc which was created in the wake of the 2008 financial crisis to help the government combat threats to financial stability clearly somebody thinks there are some concerns there said randy frederick managing director of trading and derivatives at charles schwab the problems facing european banks stem back to the era of negative interest rates which set banks up for large losses on their bond holdings he said the selloff in db shares weighed on banks in the us and europe as well as the broader market as bankingsector fears reemerged shares of ubs group ubs which recently agreed to buy rival credit suisse group traded lower other major european lenders includingitalys unicredit spa and spains banco santander sa  also saw their shares sink the thing thats important to know about financials is there probably are banks that have problems but there are others that dont frederick told marketwatch during a phone interview people need to do some research financials were the secondworst performing sector on the sp 500 with only consumerdiscretionary stocks faring worse on friday while the bankingsector drama has hammered the financial sector the outperformance of megacap technology stocks and other sectors has helped to limit losses for us stocks the sp 500 is down by just 06 so far this month according to factset data at last check concerns about the fragility of the banking sector have been percolating following a year of the federal reserves aggressive interest rate hikes on wednesday the fed announced that it hiked its policy rate by a quarter point to a range of 475 to 5 while projecting it could deliver one more 25 basispoint hike in 2023 in his first comments since the rapid collapse of silicon valley bank two weeks ago st louis federal reserve president james bullard said the latest drop in treasury yields could help cushion some of the stress facing the banking sector treasury yields continued to decline on friday with the spread between the 2year treasury note yield and the 10year note narrowing to about 40 basis points from 100 basis points just a few weeks ago readred alert recession signals gundlach expects the fed to cut rates substantially soon in us economic data released friday a report on sales of durable goods in the us showed orders fell 1 in february largely because of waning demand for passenger planes and new cars meanwhile the sp global flash us servicessector index rose to an 11month high of 538 from 505 in the prior month matthew j maley chief market strategist at miller tabak  co said investors should probably be less concerned about the banks and more concerned about what a recession might do to corporate earnings dont get us wrong if were headed for another major banking crisis the markets will get hit even harder maley said in emailed commentary however even if the situation with the global banks calms down the stock market is still headed much lower see deutsche bank drops weighing on banking stocks and scholastic tumbles on disappointing results this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal