What does Moody’s downgrade mean for markets?
Moody’s on Monday evening downgraded 10 US banks and put the credit ratings of six others on review, an indication that the agency could also eventually downgrade those institutions.
Some investors say that while the Moody’s downgrade isn’t groundbreaking, it’s a reminder that the economy, and markets, still have challenges ahead.
What happened: Bank stocks and the broader market tumbled after Moody’s announcement. The Dow Jones Industrial Average index fell 159 points, or 0.5%. The S&P 500 slipped 0.4% and the Nasdaq Composite lost 0.8%.
JPMorgan Chase (JPM) shares lost 0.6%, Wells Fargo (WFC) declined 1.3% and Goldman Sachs (GS) fell 2.1%. The SPDR Regional Banking exchange-traded fund, which tracks a number of small and mid-sized bank stocks, lost 1.3%.
The banks whose ratings the credit agency is reviewing include BNY Mellon, Northern Trust, State Street, Cullen/Frost Bankers, Truist Financial and US Bank.
Moody’s downgraded Commerce Bank, BOK Financial, M&T Bank, Old National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial and Associated Bank.
Moody’s on Monday evening downgraded 10 US banks and put the credit ratings of six others on review, an indication that the agency could also eventually downgrade those institutions. Some investors say that while the Moody’s downgrade isn’t groundbreaking, it’s a reminder that the economy, and markets, still have challenges ahead. What happened: Bank stocks and the…