Financial purge: Big bank stocks plunge
Dramatic crash in oil prices to blame
The DOW is not looking good at all as financial names take a big hit Thursday. Reeling off a 400-point loss, prices dropped below $27 for the second time in recent weeks. It settled at $26.21, the lowest point since 2003.
With the 10-year yield plunges all the way to 1.6% and short-term rates markets now beginning to price in Fed rate cuts this year, banks like Bank of America, Citigroup, JPMorgan, Wells Fargo and Goldman Sachs were hit particularly hard.
Bank of America went down -8.1%, Citigroup at -7.6%, JPMorgan at -5.1%, Wells Fargo -2.9%, and Goldman Sachs at -5.4%.
Other names like Apple, General Electric, and AT&T, also fell.
Could everyone on Wall Street brace themselves for another bad year?
Despite so much talk about rising interest rates, a whole new idea is making its way around Washington D.C. that would reverse the projected course of the Federal Reserve.
This could also be due to Federal Reserve Chair Janet Yellen’s hearing before the House Financial Services Committee Wednesday morning on the conduct of monetary policy and the state of the economy centered around the feasibility of negative Fed rates.