Morgan Stanley drags down bank stocks

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The S&P 500’s financial sector has posted losses so far this year

Exchange-traded funds that buy stocks in the financial sector were struggling Wednesday, with Morgan Stanley’s steep drop landing it among the S&P 500’s worst performers.

Financial stocks were lagging the broader S&P 500 index on Wednesday, as other Wall Street banks such as Goldman Sachs Group Inc. GS, -1.75% and Citigroup Inc. C, -1.60% also saw sharp declines. The S&P 500 was trading 0.7% lower on Wednesday afternoon, according to FactSet data, at last check. The SPDR S&P Regional Banking ETF KRE has plummeted more than 29% this year, including a sharp 1.9% decline on Wednesday afternoon, FactSet data show, at last check. The Invesco KBW Bank ETF KBWB, which tracks the broad banking industry, was down 2.1% in one of its worst trading sessions so far this month, bringing the fund’s plunge this year to almost 24%.

Meanwhile, the S&P 500’s financial sector XX:SP500.40 is down almost 3% this year based on Wednesday afternoon trading.

 

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