Wall St ends lower after bank rating cuts spark wider sell-off
- Banks slide after Moody's downgrades 10 mid-sized banks
- Drugmakers up after positive data from Novo's obesity drug study
- $Eli Lilly and Co(LLY.US$ hits lifetime high after upbeat profits
- $United Parcel Service(UPS.US$ falls after cutting annual revenue view on lower demand
- Indexes down: Dow 0.45%, S&P 0.42%, Nasdaq 0.79%
- Drugmakers up after positive data from Novo's obesity drug study
- $Eli Lilly and Co(LLY.US$ hits lifetime high after upbeat profits
- $United Parcel Service(UPS.US$ falls after cutting annual revenue view on lower demand
- Indexes down: Dow 0.45%, S&P 0.42%, Nasdaq 0.79%
All three major Wall Street benchmarks finished lower on Tuesday in a broad sell-off after the downgrading of several lenders by credit rating agency Moody's reignited fears about the health of U.S. banks and the economy.
After a five-month rally pushed the benchmark S&P 500 and Nasdaq Composite within 5% of their lifetime highs, August has now recorded five losing sessions out of six. The S&P is down 2% this month, with the Nasdaq dropping 3.2%.
After a five-month rally pushed the benchmark S&P 500 and Nasdaq Composite within 5% of their lifetime highs, August has now recorded five losing sessions out of six. The S&P is down 2% this month, with the Nasdaq dropping 3.2%.
Tuesday's decline was triggered after the agency cut ratings on 10 small- to mid-sized lenders by one notch and placed six banking giants, including Bank of New York Mellon ( $Bank of New York Mellon(BK.US$ ), U.S. Bancorp, State Street ( $State Street(STT.US$ ) and Truist Financial ( $Truist Financial(TFC.US$ ), on review for potential downgrades.
Moody's also warned that the sector's credit strength would likely be tested by funding risks and weaker profitability.
Moody's also warned that the sector's credit strength would likely be tested by funding risks and weaker profitability.
The banks index slid 1.1% on Tuesday, while the KBW Regional Banking index dipped 1.4%.
Big banks Goldman Sachs ( $Goldman Sachs(GS.US$ ) and Bank of America ( $Bank of America(BAC.US$ ) each eased around 1.9%, while Bank of New York Mellon dropped 1.3% and Truist fell 0.6%.
Reaction to the bank downgrades pushed up the CBOE Market Volatility index, Wall Street's fear gauge, at one point hitting a two-month high.
Eight of the 11 major S&P 500 sectors fell. While financials was, understandably, one of the biggest decliners, materials and consumer discretionary also weighed heavily.
Healthcare shares also advanced, supported by Eli Lilly ( $Eli Lilly and Co(LLY.US$ ) jumping 14.9% to a record close on news of its upbeat quarterly profits.
Drugmakers globally rose after Denmark-based Novo Nordisk ( $Novo-Nordisk A/S(NVO.US$ ) said its obesity drug, Wegovy, reduced the risk of heart disease.
Dish Network ( $Dish Network(DISH.US$ ) jumped 9.6% as the pay-TV provider disclosed plans to merge with satellite communications vendor EchoStar, which also rose 1%.
United Parcel Service ( $United Parcel Service(UPS.US$ ) slipped 0.9% after the U.S. economy bellwether cut its annual revenue forecast.
Volume on U.S. exchanges was 10.94 billion shares, in line with the average over the last 20 trading days.
The S&P 500 posted 13 new 52-week highs and 17 new lows; the Nasdaq Composite recorded 46 new highs and 195 new lows. $Dow Jones Industrial Average(.DJI.US$ $SPDR S&P 500 ETF(SPY.US$ $Invesco QQQ Trust(QQQ.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$
Big banks Goldman Sachs ( $Goldman Sachs(GS.US$ ) and Bank of America ( $Bank of America(BAC.US$ ) each eased around 1.9%, while Bank of New York Mellon dropped 1.3% and Truist fell 0.6%.
Reaction to the bank downgrades pushed up the CBOE Market Volatility index, Wall Street's fear gauge, at one point hitting a two-month high.
Eight of the 11 major S&P 500 sectors fell. While financials was, understandably, one of the biggest decliners, materials and consumer discretionary also weighed heavily.
Healthcare shares also advanced, supported by Eli Lilly ( $Eli Lilly and Co(LLY.US$ ) jumping 14.9% to a record close on news of its upbeat quarterly profits.
Drugmakers globally rose after Denmark-based Novo Nordisk ( $Novo-Nordisk A/S(NVO.US$ ) said its obesity drug, Wegovy, reduced the risk of heart disease.
Dish Network ( $Dish Network(DISH.US$ ) jumped 9.6% as the pay-TV provider disclosed plans to merge with satellite communications vendor EchoStar, which also rose 1%.
United Parcel Service ( $United Parcel Service(UPS.US$ ) slipped 0.9% after the U.S. economy bellwether cut its annual revenue forecast.
Volume on U.S. exchanges was 10.94 billion shares, in line with the average over the last 20 trading days.
The S&P 500 posted 13 new 52-week highs and 17 new lows; the Nasdaq Composite recorded 46 new highs and 195 new lows. $Dow Jones Industrial Average(.DJI.US$ $SPDR S&P 500 ETF(SPY.US$ $Invesco QQQ Trust(QQQ.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$
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