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Stocks retreated Tuesday as an August selloff was reignited by a downgrade of the banking sector by credit rating agency Moody’s.
The Dow Jones Industrials dropped 354.08 points, or 1%, to pause for lunch Tuesday at 35,119.05, led by a decline in Goldman Sachs. Monday, the 30-stock index had had its best day since June 15.
The S&P 500 index lost 49.2 points, or 1.1%, to 4,469.24.
The NASDAQ index fell 210.85 points, or 1.5%, to 13,783.55.
Banks fell broadly after Moody’s downgraded the credit rating on several regional banks, including M&T Bank and Pinnacle Financial, citing deposit risk, a potential recession and struggling commercial real estate portfolios. The credit agency also placed Bank of N.Y. Mellon and State Street on review for a downgrade.
Goldman Sachs skidded 3% and JPMorgan Chase traded more than 2% lower.
Traders also parsed through the latest batch of earnings. UPS shares dropped more than 1% after the delivery giant reported weaker-than-expected revenue for the second quarter. The company also lowered its full-year revenue outlook.
Prices for the 10-year Treasury gained sharply, lowering yields to 4.01% from Monday’s 4.08%. Treasury prices and yields move in opposite directions.
Oil prices sank 23 cents to $81.71 U.S. a barrel.
Gold prices slid nine dollars to $1,961.00 U.S. an ounce.
