NEW YORK (MarketWatch) — The U.S. stock market finished Thursday’s volatile session lower, extending the losing streak to five straight sessions after the Swiss National Bank stunned global markets by cutting its currency cap with the euro.

The main benchmarks struggled to hold on to opening gains, as a shock move by the SNB to lift its currency ceiling, disappointing earnings results from large banks, as well as a mixed bag of economic releases also sapped confidence.

The unexpected move to ditch its currency ceiling and implement a rate cut by SNB shook up currency, commodity and equity markets around the world, as the move created uncertainty among investors, who have grown accustomed to rely on central banks to prop up markets.

Traders observed that ‘once-in-a-career’ turbulence left many market participants in the throes of panic for the first two hours after the announcement.

Wall Street is bracing for shock waves from Swiss franc move

The S&P 500 SPX, -1.11% , which opened higher, closed down 18.57 points, or 0.9%, at 1,992.70.

Defensive sectors, such as utilities ended higher, while technology, financials and energy sector stocks sold off.

The Dow Jones Industrial Average DJIA, -0.87% ended 106.38 points, or 0.6%, lower at 17,320.71. J.P. Morgan Chase & Co and Cysco Systems Inc. were the top decliners on the index.

The Nasdaq Composite COMP, -1.07% dropped 68.50 points, or 1.5%, to 4,570.82, as its biggest component Apple Inc. dropped 2.7%.

Scott Wren, chief equity strategist at Wells Fargo Advisors, said that market reaction today indicates how worried investors are about global growth.

Wren down played recent volatility, noting that the S&P 500 is less than 5% down from its previous peak.

“The majority of trading on Wall Street is done by short-term traders, which explains intraday volatility. If it were ‘buy-and-hold’ investors, dumping the stocks, we would see a much bigger selloff,” Wren added.

Ashraf Laidi, chief global strategist at City Index Ltd, a UK-based forex broker, said that the Swiss action today signals a growing deflationary pressure globally.

“The U.S. equity market so far believes that the domestic economy will continue to power ahead, but the bond markets are telling a different story. Yields are falling, signaling negative rates and deflation. At some point, stocks will catch up and have a 18% correction. At this point, the Fed isn't going to raise rates, because of risk of depression,” Laidi said.

Laidi’s view runs counter to the majority of Wall Street strategists, who believe the U.S. economy will withstand in the face of troubles abroad.

Bob Landry, portfolio manager at USAA Investments with $22.8 billion in assets under management accounts, said that the stock market moves today are mainly driven by macro factors, such as the shocking decision by Swiss National Bank, and not fundamentals.

“The turbulence in currency markets, specifically effect on the dollar is temporary. We expect the dollar continue to strengthen. We also believe the correction in oil prices is probably overdone and we will see crude rebounding from current levels in the near future,” Landry said.

Data on Thursday were mixed and did little to boost confidence about the pace of economic growth. Jobless claims jumped above the 300,000 level, highest level since September, while producer prices posted the biggest decline in December in more than three years. Meanwhile, two regional manufacturing gauges - Empire State and Philly Fed manufacturing indexes - moved from opposite directions to a similar point in January, with both showing an industrial sector in the Northeast growing at a moderate rate.

But the real focus on Thursday was decidedly on Switzerland’s actions.

A Swiss jolt: In its stunning move Thursday, the Swiss National Bank dumped its long-standing minimum exchange rate of 1.20 Swiss francs to the euro, as the cap on the franc appeared increasingly indefensible in the face of the weakening euro.

Read: Swiss franc soars as central bank scraps exchange cap

The Swiss franc, long considered a haven, surged 14% against the euro EURCHF, +0.00% and the U.S. dollar USDCHF, +0.34% . In equities, Swiss stocks SMI, +0.18% cratered 8.7%, with Swatch Group Ltd. UHR, -0.46% skidding 16%, though U.S.-listed shares of Swiss companies jumped.

Meanwhile, crude-oil futures settled sharply lower Thursday, erasing a surge higher that followed the Swiss National Bank’s decision to scrap a cap on its currency, as the U.S. dollar regained its footing and investors focused on OPEC’s downgraded forecast of demand for its crude.

West Texas Intermediate crude oil for February delivery CLG25, fell $2.23, or 4.6%, to settle at $46.25 a barrel after trading as high as $51.27.

Gold US:GCG5 surged $30.30, or 2.5%, to settle at $1,264.80, its highest level in four months.

Markets swing; What can soothe jitters?

Banks: After Wednesday’s earnings-related beat down for J.P. Morgan Chase & Co. JPM, -0.21% , investors got results from Bank of America BAC, -0.55% . The bank’s shares fell 5.2% as it said profit and revenue fell.

Meanwhile, money manager BlackRock Inc. BLK, +1.55% reported a fourth-quarter profit that beat expectations. Shares fell 1%.

Builders: Lennar LEN, +1.33% reported better-than-expected results and said it was optimistic about the housing market recovery. But shares fell 7.2%. Executives at fellow builder KB Home had spoken after an earnings release earlier this week of a declining margin outlook.

Citigroup C, -1.47% shares dropped 3.7% after the bank reported its fourth-quarter profit plunged as the company was hit by large legal charges.

Best Buy Co. Inc. BBY, -0.04% shares plunged 14%, after holiday sales disappointed.

RadioShack Corp. US:RSH is preparing to file for bankruptcy protection as early as next month, according to a Wall Street Journal report citing people familiar with the matter.

BlackBerry Ltd. US:BBRY was getting hammered, down 20% after the company denied late Wednesday that Samsung Electronics Co. 005930, -0.33% is negotiating to buy the Canada-based mobile phone group. Shares rallied around 30% in the regular session.

Read more about today’s notable movers in our Movers & Shakers column.