Big Bank Stress Is Crushing the Stock Market Today
The stock market fell sharply on Friday morning, and for once, worries about the coronavirus pandemic weren't entirely in the spotlight. While it's true that case counts have continued to rise, there was more attention being paid on Wall Street to the responses that regulatory bodies have made in light of the financial pressure from business shutdowns and other public health and safety measures. Just before 11:30 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 528 points to 25,218. The S&P 500 (SNPINDEX: ^GSPC) was down 53 points to 3,032, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was lower by 163 points to 9,853.
Financial stocks were the worst performers on Friday morning, and that's because big banks took a big hit from the latest news from the Federal Reserve. This is the time of year when stress test results come out, and the Fed dropped a bombshell on the industry that could have serious ramifications for bank shareholders for the foreseeable future.
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Source Fool.com