US equities retreated on Tuesday, dragged lower by bank stocks after Moody’s cut the credit rating of several midsized lenders and warned that higher costs could cut into their profitability.
Wall Street’s benchmark S&P 500 fell 0.4 per cent, while the Nasdaq Composite shed 0.8 per cent.
Banks were among the biggest decliners after the ratings of 10 midsized US lenders were cut on Monday night, with Moody’s citing a slowdown in deposits, higher funding costs and asset quality risks, particularly in the commercial real estate sector.
Read the full story on the Financial Times here.