THE US equities reportedly retreated recently and were dragged lower by bank stocks after rating agency “Moody’s” reduced the credit rating of several small to medium-sized U.S. banks.
Reports citing the Dow Jones Industrial Average fell 0.45 percent to 35,314.49.
The Standard and Poor’s 500 composite 500 dropped 0.42 percent to 4,499.38.
The NASDAQ, meanwhile, slipped 0.79 percent to 13,884.32.
The decline follows after Moody’s Investor’s service, a rating agency, downgraded the credit ratings of 10 midsized U.S. lenders on Monday.
Moody’s also placed six major lenders on review for potential downgrades and changed its outlook to negative for 11 major banks in the U.S.
To recall Moody’s warned that multiple factors are putting pressure on the U.S. banking sector, including funding risks, regulatory capital deficiencies, and rising risks related to commercial real estate.
