Bank stocks sold off in unison on Tuesday following the Federal Reserve’s emergency rate cut to combat an economic slowdown triggered by the fast-spreading coronavirus. The weakness by the group kept the overall markets’ gains in check.
Shares of JPMorgan and Bank of America dropped 4% and 5%, respectively, while Citigroup and Morgan Stanley fell more than 2%. The declines accelerated after the Fed slashed interest rates by half a percentage point on Tuesday in between its policy meetings, the first such cut since the financial crisis.
