The monthly deficit in goods and services is expected to widen for the second month in a row and the second time in seven months to $80.0 billion, the largest since May.
Shares of big regional banks, which are particularly sensitive to the economic outlook, were among the biggest decliners. PNC Financial Services dropped 6.8%, Citizens Financial Group fell 5.3% and Regions Financial declined 5.1%. The S&P 500 dropped 72.86 points, or 1.8%, to 3998.84, pulling back after a November rally that was driven by hopes that the Fed would slow down its pace of rate increases.
"The market was trading on rosy news," he said. "From our perspective it's not going to be realized."Shares of Tesla fell $12.41, or 6.4%, to $182.45 after Bloomberg and Reuters reportedShares of VF, parent of brands including The North Face and Vans, dropped $3.71, or 11%, to $29.51 after the company cut its revenue and earnings outlook and said Chairman and Chief Executive Steve Rendle would retire.
Investors have increasingly focused on China's COVID-19 policies over the past month, leading to big rallies and occasional slides in stock prices.