{"id":1995130,"date":"2023-08-09T07:57:02","date_gmt":"2023-08-09T11:57:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off\/"},"modified":"2023-08-09T08:01:44","modified_gmt":"2023-08-09T12:01:44","slug":"wall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off\/","title":{"rendered":"Wall St closes down as bank rating cuts trigger broader sell-off."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1995130&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Wall Street Benchmarks Finish Lower \u200bAmid Credit Rating \u2064Downgrades<\/h2>\n<blockquote>\n<p>By David\u2064 French<\/p>\n<\/blockquote>\n<p>(Reuters) \u2013 All three\u2062 major Wall Street \u200dbenchmarks finished lower on Tuesday in a broad sell-off after\u200c the \u200cdowngrading\u200d of several lenders by\u2064 credit rating agency\u2062 Moody\u2019s reignited fears \u200babout \u2064the health of U.S. banks and the economy.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>After a five-month rally \u200bpushed the benchmark S&#038;P \u2064500 and\u200d Nasdaq Composite within 5% of \u200dtheir lifetime highs, August has now \u200brecorded five losing \u2063sessions \u2063out of six. The S&#038;P is down 2%\u200b this \u2064month, with\u2062 the Nasdaq dropping 3.2%.<\/p>\n<p>Tuesday\u2019s decline was triggered \u2062after the agency cut\u200b ratings on 10 small- to mid-sized\u200b lenders by\u200b one notch and placed six \u2064banking giants, \u200cincluding Bank of New\u2064 York Mellon, U.S. Bancorp, State Street and Truist Financial, on review \u200cfor potential downgrades.<\/p>\n<p>Moody\u2019s also warned that\u2062 the\u2063 sector\u2019s credit strength would likely be tested\u2063 by funding risks and weaker profitability.<\/p>\n<p>Market confidence in U.S. banks has\u200d been gradually returning after \u2063the \u200cfailures of three lenders\u200c earlier this year, including Silicon\u200b Valley \u2062Bank, shocked the financial system.<\/p>\n<p>The S&#038;P 500 Banks\u2062 index has slipped\u200b 2.5% year to date, compared with a\u2063 17.2% gain by \u2064the S&#038;P 500, and the downgrades exposed the fragility of investors\u2019 confidence towards financial \u2062stocks.<\/p>\n<p>The banks index slid 1.1% on Tuesday, while the KBW Regional Banking index dipped \u20631.4%.<\/p>\n<p>Big banks \u2064Goldman Sachs and Bank of\u200c America each eased around 1.9%,\u2062 while Bank of New York\u2063 Mellon\u2062 dropped 1.3% and Truist fell \u200d0.6%.<\/p>\n<p>Jason Pride,\u2063 chief of investment strategy and research at Glenmede, \u200cnoted that Moody\u2019s downgrades, \u200das well as the notice given to larger banks about possible future action, were a \u200bpublic statement about the agency\u2019s concerns for \u200cthe health of\u2063 the banking \u2063system, and how it affects \u200cthe wider economy.<\/p>\n<p>\u201cI think it\u2019s a\u2064 big deal in the bigger \u200cpicture of how the\u200d economy operates, because regional banks\u2019 lending is one \u200cof\u2064 the main lubricants of the economy,\u201d he said.<\/p>\n<p>\u201cIf it slows down, the engine just \u200bdoesn\u2019t work \u200das\u2063 well.\u201d<\/p>\n<p>Reaction to the bank downgrades pushed up the CBOE Market\u2064 Volatility index, Wall Street\u2019s fear gauge, at\u200b one point hitting a two-month high.<\/p>\n<p>The Dow Jones Industrial Average fell 158.64 points, or 0.45%, to 35,314.49, the S&#038;P 500 lost\u200b 19.06 \u200bpoints, or 0.42%,\u2063 at 4,499.38 and the Nasdaq\u2064 Composite dropped 110.07 points, or 0.79%, to \u200d13,884.32.<\/p>\n<p>Eight\u200b of the 11 \u200bmajor S&#038;P 500 sectors fell. While financials was, understandably, one of the biggest decliners, materials and consumer \u200bdiscretionary also weighed heavily.<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off\/\" title=\"Wall St closes down as bank rating cuts trigger broader sell-off.\">energy index \u2064overcame<\/a> an initial\u2064 slump, \u2063caused\u2063 by disappointing trade \u2062data from top-consumer China weighing on crude prices, to trade 0.5% higher. It\u200b rebounded\u200b along with oil prices after\u2063 a U.S.\u2063 government agency projected a \u200crosier economic outlook. [O\/R]\n<p>Healthcare shares also\u200d advanced, \u200csupported by Eli Lilly jumping\u2064 14.9% to a record\u200c close on news of its upbeat quarterly profits.<\/p>\n<p>Drugmakers globally rose \u200cafter Denmark-based Novo Nordisk\u200b said its obesity drug, Wegovy, reduced the risk of\u2062 heart disease.<\/p>\n<p>Dish Network jumped 9.6% as the pay-TV provider disclosed\u2062 plans to merge \u2063with satellite \u2063communications vendor EchoStar, which also rose 1%.<\/p>\n<p>United Parcel Service slipped 0.9% after the U.S. economy bellwether cut its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-closes-little-changed-on-fed-policy-fears\/\" title=\"Wall Street closes little changed on Fed policy fears\">annual revenue forecast<\/a>.<\/p>\n<p>Volume on \u200dU.S.\u2063 exchanges was 10.94 billion shares, in line with the average over the last \u206220 trading days.<\/p>\n<p>The S&#038;P 500 posted 13 \u200dnew 52-week highs and 17 new lows; \u2064the \u2062Nasdaq Composite recorded 46 new highs and 195 new lows.<\/p>\n<\/p>\n<p>  \u2062(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru and David French\u200b in New York; Editing by Sriraj Kalluvila, Vinay Dwivedi and \u2063Richard Chang)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/futures-inch-lower-banks\/attachment\/file-photo-traders-work-on-the-floor-of-the-nyse-5\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Latest \u200dNews:<\/h3>\n<ul>\n<li>President Joe\u2062 Biden praises \u2063Administration&#8217;s efforts in climate and conservation<\/li>\n<li>Controversy surrounds \u200bvaccine discourse censorship\u2062 allegations against Biden Admin.<\/li>\n<li>Trump supporters gather in Windham, New Hampshire to hear from \u2064the\u200d 45th \u2064president<\/li>\n<li>Make America Great \u200bAgain Inc. spokesperson emphasizes the need for a true commander-in-chief<\/li>\n<li>Hyundai Motor Group \u200bplans to \u200dlaunch more electric vehicles<\/li>\n<li>Robert Bosch establishes joint\u2062 venture with TSMC, Infineon, and \u200cothers<\/li>\n<li>Taiwan Semiconductor Manufacturing Co approves 3.5 \u200dbillion euro investment<\/li>\n<li>Meta Platforms seeks \u2062to stop \u200bfine imposed by Norway over <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/several-members-of-congress-want-to-block-amazons-acquisition-of-irobot\/\" title=\"Several Members of Congress Want to Block Amazon\u2019s Acquisition of iRobot\">data privacy concerns<\/a><\/li>\n<\/ul><\/div>\n","protected":false},"excerpt":{"rendered":"<p>All three major Wall Street benchmarks closed lower on Tuesday due to a broad sell-off. Moody&#8217;s downgrade of several lenders sparked concerns about the health of U.S. banks and the economy. The S&amp;P 500 and Nasdaq Composite, which had been on a five-month rally, were affected.<\/p>\n","protected":false},"author":66,"featured_media":1995131,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1995130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1995130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1995130"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1995130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1995131"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1995130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1995130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1995130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}