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US stocks drop as bank shares slide after Moody's downgrades 10 firms

Phil Rosen   

US stocks drop as bank shares slide after Moody's downgrades 10 firms
  • US stocks dropped Tuesday, and the Dow lost more than 260 points at the open.
  • Moody's downgraded 10 US banks and also put other firms on downgrade watch.

US stocks opened lower on Tuesday, with the Dow shedding almost 300 points as investors assess Moody's downgrade of 10 small and mid-sized US banks.

Moody's slashed the credit ratings on the banks on Monday, while also placing several other larger firms under review including Bank of New York Mellon, US Bankcorp, Northern Trust, and State Street.

The rating agency also published negative outlooks for 11 banks, including Citizens Financial and Capital One.

Shares of mega-cap banks were also down on the move, with Bank of America, JPMorgan, and all trading lower by nearly 3% Tuesday morning.

Elsewhere in the market, investors continue to take in stronger-than-expected earnings for the second quarter. Of the companies that have reported earnings so far, 81% are beating profit estimates by a median of 7%, Fundstrat data shows.

On Thursday, markets will be watching for July's CPI reading which, combined with incoming labor market data, will help inform the Federal Reserve's next policy decision.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:

Here's what else is going on:

In commodities, bonds, and crypto:



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