Are US Banks On Shaky Ground? Stocks Tumble As Fitch Sounds Alarm On Potential Downgrades
Portfolio Pulse from Piero Cingari
Fitch Ratings has raised concerns about potential rating reductions for numerous U.S. banks, including JPMorgan Chase & Co. and Bank of America Corp. A further dip in the industry's rating from AA- to A+ could prompt Fitch to reassess the ratings of over 70 U.S. banks. This news has caused a drop in the stocks of these banks, as well as Blackrock Inc., and ETFs such as Invesco KBW Bank ETF and the Financial Select Sector SPDR Fund.

August 15, 2023 | 9:22 pm
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Bank of America Corp. is also at risk of a potential rating reduction by Fitch Ratings, causing its stock to drop by 3.4%.
The potential downgrade by Fitch Ratings has caused uncertainty among investors, leading to a drop in Bank of America's stock price.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Blackrock Inc. saw a 3% drop in its stock price, marking one of its most significant downturns this year.
The potential downgrade of U.S. banks by Fitch Ratings has caused uncertainty in the financial sector, leading to a drop in Blackrock's stock price.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
JPMorgan Chase & Co. is at risk of a potential rating reduction by Fitch Ratings, causing its stock to drop by 2.8%.
The potential downgrade by Fitch Ratings has caused uncertainty among investors, leading to a drop in JPMorgan's stock price.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
The Invesco KBW Bank ETF fell by 2.9% following the news of potential bank rating reductions.
The potential downgrade of U.S. banks by Fitch Ratings has caused uncertainty in the financial sector, leading to a drop in the Invesco KBW Bank ETF.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund fell by 1.9% following the news of potential bank rating reductions.
The potential downgrade of U.S. banks by Fitch Ratings has caused uncertainty in the financial sector, leading to a drop in the Financial Select Sector SPDR Fund.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 80