Stocks of major U.S. lenders sank with a sector gauge hitting the lowest level since November 2020 on Wednesday, following European banks down after Credit Suisse Group AG plunged.
Morgan Stanley and Citigroup Inc. each tumbled more than 5% on Wednesday, while the KBW Bank Index dropped 3.6%. Among other large lenders, JPMorgan Chase & Co., Goldman Sachs Group Inc. and Wells Fargo & Co. all sank more than 3%.
First Republic Bank tumbled 21% after being downgraded to junk by S&P Global Ratings and Fitch Ratings, while other smaller regional lenders were mostly lower.
