September S&P 500 futures (ESU23) are down -0.45%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.49% this morning as fresh worries about China’s economic rebound and the state of U.S. banks weighed on sentiment.
Moody’s Investors Service lowered credit ratings by one notch for 10 small and midsize U.S. banks late Monday and indicated the possibility of downgrading major lenders, including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp., and Truist Financial Corp. The agency cautioned that the credit strength of the sector might face challenges due to funding risks and weaker profitability. “Many banks’ second-quarter results showed growing profitability pressures that will reduce their ability to generate internal capital,” Moody’s said in a note.
