Aug. 1 at 9:07 PM
Are banks next?
Bank stocks were sharply lower on fears that a slowing economy could hit loan growth. Shares of JPMorgan Chase
pulled back more than 2%, while Bank of America
and Wells Fargo
fell more than 3% each. GE Aerospace
and Caterpillar
dipped nearly 1% and 2%, respectively.
“What we’re seeing is concern about growth that comes at a time when market multiples have become quite elevated,” said Thierry Wizman, global FX and rates strategist at Macquarie Group. “It’s also indicative of a late summer growth scare, but you can layer that a little bit with that the idea that the doves on the FOMC ended up being correct, which lends to the idea that the Fed is late.”
The numbers increased the odds that the Fed could act sooner than expected to cut rates and prop up the economy. Traders place the likelihood of a September rate cut at roughly 86% after the jobs figures, according to CME fed futures trading..
$BAC $JPM $GS $MS