Bank stocks are falling on Tuesday, and investors can look to Moody’s lowering credit ratings as the reason for the decline.
The credit rating business started off the bad news for bank stocks by cutting credit ratings for 10 banks. To go along with that, the firm is also evaluating several larger banking companies for a potential downgrade.
Moody’s pointed to a plethora of issues facing banks in the current economy. Chief among them is the risk of an impending recession as well as The Federal Reserve’s increased interest rates to combat inflation.
Here’s what analysts Jill Cetina and Ana Arsov said about the matter in a research note:
“We continue to expect a mild recession in early 2024, and given the funding strains on the U.S. banking sector, there will likely be a tightening of credit conditions and rising loan losses for U.S. banks.”
Let’s check out how this report is affecting bank stocks below!
Bank Stocks Down Today
- Wells Fargo (NYSE:WFC) stock is falling 3% as of Tuesday morning alongside the report.
- JPMorgan Chase (NYSE:JPM) shares are taking a 2.3% beating as of this writing.
- Morgan Stanley (NYSE:MS) is decreasing 2.7% alongside the poor outlook for bank stocks.
- Bank of America (NYSE:BAC) stock is dropping 3.7% this morning.
- Goldman Sachs (NYSE:GS) shares are slipping 2.8% Tuesday morning following the news.
- Citigroup (NYSE:C) stock is down 2.9% with today’s bank stocks warning.
Investors seeking out even more of the most recent stock market news for today are in the right place!
InvestorPlace is home to all of the biggest stock market stories that traders need to know about on Tuesday! That includes the news moving shares of Novavax (NASDAQ:NVAX), Palantir Technologies (NYSE:PLTR), and Datasea (NASDAQ:DTSS) stock today. We’ve got all of that news ready to go at the links below!
More Tuesday Stock Market News
- Novavax (NVAX) Stock Gets a Boost From Q2 Vaccine Sales
- PLTR Stock Alert: Palantir Announces $1 Billion Stock Buyback
- Why Is Datasea (DTSS) Stock Down 36% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
