NEW YORK (AP) — Stocks closed lower as Wall Street's worries about the U.S. banking system cranked even higher.

The S&P 500 lost 0.7% Thursday. The Dow Jones Industrial Average fell 286 points and is now down for the year. The Nasdaq composite also closed lower.

PacWest Bancorp fell by half as investors looked for the next weak link following several big U.S. bank failures since March. Other smaller and mid-sized banks also fell sharply.

Helping to limit the market's losses were several companies reporting better profits than expected.

The European Central Bank also raised its benchmark interest rate and indicated more rate hikes were on the way.