Bank Stocks Slump After Fed Raises Rates
The Federal Reserve's decision to increase rates signals that they are concerned about the economy collapsing if bank collapses continue.
After the Federal Reserve's Wednesday meeting, financial stocks dropped.
Increased interest rates
The expected quarter-point increase in the yield is a sign that the central bank doesn't worry about the possibility of the collapse of many banks this month affecting the entire sector.
Both the KBW Nasdaq commercial bank index and SPDR S&P Regional Banking Exchange traded down by 2%. PNC Financial Services Group shares and U.S. Bancorp shares fell by 2.6% and 4.4%, respectively. JPMorgan Chase & Co., Bank of America Corp. each fell about 1%.