Bank Stocks Tumble After Fed Raises Rates, Sees Fewer 2019 Hikes
(Bloomberg) -- Banking stocks fell to session lows after the Federal Reserve raised borrowing costs for the fourth time this year and trimmed its forecast for future hikes as Chairman Jerome Powell said there’s a mood of angst about growth.
The KBW Bank Index, a closely-watched barometer of the sector, sank as much as 2.7 percent as it headed for its fifth straight decline. All 24 members of the index traded lower with the biggest decliners falling as much as 4 percent.
The KBW Regional Banking Index slid as much as 3.1 percent. Regional banks are sensitive to both interest rates and expectations for economic growth.
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