Bank stocks getting hammered.
Dow down -700 points now
The stocks are making new lows with the Dow down over 700 points or 2.67%. The Nasdaq is still leading the downside with a 3% decline.
The Nasdaq is down 3% now.
The major indices are getting hammered but the banks/financials are doing even worse. Former Fed Governor Greenspan did not help this morning by saying "there is no barrier" for US rates going below 0%. How can the banks make money with rates so low and with a negative curve? Plus the market is getting worried at what the inverted yield curve says about the economy. Is it signaling the next recession. The market is not waiting to find out.
Below is a look at some of the banks and financials. Note the % changes for those stocks. They are outperforming .... to the downside. Ouch!
PS. Gold is trading at new highs. Crude oil is at lows too and down -5.18%.