BANKS dragged the US stock market lower yesterday, with losses accelerating late after Bank of America’s stock price fell below $5 for the first time in nearly three years.
When BofA, the largest US bank, plunged through $5, it ignited a late-day decline in the sector and the broader market, which fell by one per cent.
Meanwhile, JP Morgan Chase fell 3.7 per cent and Citigroup slumped 4.6 per cent.
The Dow Jones industrial average was down 100.13 points, or 0.84 per cent, at 11,766.26. The Standard & Poor’s 500 Index was down 14.31 points, or 1.17 per cent, at 1,205.35. The Nasdaq Composite Index was down 32.19 points, or 1.26 per cent, at 2,523.14.
Winn-Dixie Stores surged 71 per cent after agreeing to go private in a $560m all-cash deal with Bi-Lo LLC.
More than three-quarters of companies traded on the New York Stock Exchange fell while 76 per cent of Nasdaq-listed issues closed in negative territory.