Moody's downgrade sparks bank sell-off

US stocks declined on Tuesday, with Moody's downgrade of nearly a dozen US lenders pulling bank stocks lower.

The ratings giant also put a handful of larger banks on review notice, including US Bancorp, Bank of New York Mellon, and Northern Trust. The smaller lenders that Moody's officially downgraded include Pinnacle Financial, Webster Financial, and M&T Bank. "US banks continue to contend with interest rate and asset-liability management risks with implications for liquidity and capital, as the wind-down of unconventional monetary policy drains systemwide deposits and higher interest rates depress the value of fixed-rate assets," Moody's analysts wrote in a Monday note.

Meanwhile, corporate earnings continue to surprise to the upside. Already, 89% of S&P 500 companies have reported for the second quarter, and nearly 80% have beaten Wall Street expectations, FactSet data shows. On Thursday, investors will get the Consumer Price Index report for July, which will help inform the Federal Reserve's next policy move.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Smaller 'Baby' Land Rover Defender EV Reportedly Coming in 2027Land Rover is reportedly planning to introduce a smaller electric version of the Defender in 2027. The new model will be based on JLR's electric-only EMA architecture and will not replace the current full-size SUV in Land Rover's lineup. The next-generation Defender is also expected to arrive in 2026, based on the company's Modular Longitudinal Architecture (MLA) platform.
Source: CARandDRIVER - 🏆 576. / 51 Read more »

U.S. stocks open lower after weak China trade data, Moody’s downgrades U.S. banksU.S. stock indexes opened lower on Tuesday with financial stocks tumbling after Moody’s downgraded the credit rating of several small- to mid-sized U.S. banks and said it may lower the ratings on six major banks including U.S. Bancorp, State Street Corp., and Bank of New York Mellon Corp.
Source: MarketWatch - 🏆 3. / 97 Read more »