{"id":46482,"date":"2023-08-09T18:19:15","date_gmt":"2023-08-09T22:19:15","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/wall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off\/"},"modified":"2023-08-09T18:19:17","modified_gmt":"2023-08-09T22:19:17","slug":"wall-st-ends-lower-after-bank-rating-cuts-spark-wider-sell-off","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=46482","title":{"rendered":"Wall St ends lower after bank rating cuts spark wider sell-off"},"content":{"rendered":"
\n
\n

\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan McDermid\/File Photo<\/span>
\n<\/i>\n<\/div>\n

By David French<\/p>\n

(Reuters) – 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 (NYSE:) reignited fears about the health of U.S. banks and the economy.<\/p>\n

After a five-month rally pushed the benchmark and 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%.<\/p>\n

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 (NYSE:), U.S. Bancorp, State Street <\/span><\/span> (NYSE:) and Truist Financial (NYSE:), on review for potential downgrades.<\/p>\n

Moody’s also warned that the sector’s credit strength would likely be tested by funding risks and weaker profitability.<\/p>\n

Market confidence in U.S. banks has been gradually returning after the failures of three lenders earlier this year, including Silicon Valley Bank, shocked the financial system.<\/p>\n

The S&P 500 Banks index has slipped 2.5% year to date, compared with a 17.2% gain by the S&P 500, and the downgrades exposed the fragility of investors’ confidence towards financial stocks.<\/p>\n

The banks index slid 1.1% on Tuesday, while the KBW Regional Banking index dipped 1.4%.<\/p>\n

Big banks Goldman Sachs (NYSE:) and Bank of America (NYSE:) each eased around 1.9%, while Bank of New York Mellon dropped 1.3% and Truist fell 0.6%.<\/p>\n

Jason Pride, chief of investment strategy and research at Glenmede, noted that Moody’s downgrades, as well as the notice given to larger banks about possible future action, were a public statement about the agency’s concerns for the health of the banking system, and how it affects the wider economy.<\/p>\n

“I think it’s a big deal in the bigger picture of how the economy operates, because regional banks’ lending is one of the main lubricants of the economy,” he said.<\/p>\n

“If it slows down, the engine just doesn’t work as well.”<\/p>\n

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.<\/p>\n

The fell 158.64 points, or 0.45%, to 35,314.49, the S&P 500 lost 19.06 points, or 0.42%, at 4,499.38 and the Nasdaq Composite dropped 110.07 points, or 0.79%, to 13,884.32.<\/p>\n

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.<\/p>\n

The energy index overcame an initial slump, caused by disappointing trade data from top-consumer China weighing on crude prices, to trade 0.5% higher. It rebounded along with oil prices after a U.S. government agency projected a rosier economic outlook. [O\/R]\n

Healthcare shares also advanced, supported by Eli Lilly (NYSE:) jumping 14.9% to a record close on news of its upbeat quarterly profits.<\/p>\n

Drugmakers globally rose after Denmark-based Novo Nordisk (NYSE:) said its obesity drug, Wegovy, reduced the risk of heart disease.<\/p>\n

Dish Network (NASDAQ:) jumped 9.6% as the pay-TV provider disclosed plans to merge with satellite communications vendor EchoStar, which also rose 1%.<\/p>\n

United Parcel <\/span><\/span> Service (NYSE:) slipped 0.9% after the U.S. economy bellwether cut its annual revenue forecast.<\/p>\n

Volume on U.S. exchanges was 10.94 billion shares, in line with the average over the last 20 trading days.<\/p>\n

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. <\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan McDermid\/File Photo By David French (Reuters) – All three major Wall Street benchmarks finished lower on Tuesday in a broad sell-off after the downgrading of several lenders by credit rating […]<\/p>\n","protected":false},"author":1,"featured_media":800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-46482","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"\nWall St ends lower after bank rating cuts spark wider sell-off | iFintechWorld<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=46482\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wall St ends lower after bank rating cuts spark wider sell-off | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=46482\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-09T22:19:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-09T22:19:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/SP500StandardandPoors500Index_800x533_L_1657544297.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=46482#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=46482\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Wall St ends lower after bank rating cuts spark wider sell-off\",\"datePublished\":\"2023-08-09T22:19:15+00:00\",\"dateModified\":\"2023-08-09T22:19:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=46482\"},\"wordCount\":601,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=46482#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=46482\",\"url\":\"https:\/\/ifintechworld.com\/?p=46482\",\"name\":\"Wall St ends lower after bank rating cuts spark wider sell-off | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-09T22:19:15+00:00\",\"dateModified\":\"2023-08-09T22:19:17+00:00\",\"description\":\"\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=46482#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=46482\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=46482#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Wall St ends lower after bank rating cuts spark wider sell-off\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Wall St ends lower after bank rating cuts spark wider sell-off | iFintechWorld","description":"\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=46482","og_locale":"en_US","og_type":"article","og_title":"Wall St ends lower after bank rating cuts spark wider sell-off | iFintechWorld","og_description":"\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan","og_url":"https:\/\/ifintechworld.com\/?p=46482","og_site_name":"iFintechWorld","article_published_time":"2023-08-09T22:19:15+00:00","article_modified_time":"2023-08-09T22:19:17+00:00","og_image":[{"width":800,"height":533,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/SP500StandardandPoors500Index_800x533_L_1657544297.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=46482#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=46482"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Wall St ends lower after bank rating cuts spark wider sell-off","datePublished":"2023-08-09T22:19:15+00:00","dateModified":"2023-08-09T22:19:17+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=46482"},"wordCount":601,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=46482#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=46482","url":"https:\/\/ifintechworld.com\/?p=46482","name":"Wall St ends lower after bank rating cuts spark wider sell-off | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-09T22:19:15+00:00","dateModified":"2023-08-09T22:19:17+00:00","description":"\u00a9 Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS\/Brendan","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=46482#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=46482"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=46482#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Wall St ends lower after bank rating cuts spark wider sell-off"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/46482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46482"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/46482\/revisions"}],"predecessor-version":[{"id":46483,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/46482\/revisions\/46483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/800"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}