Wall Street Drops After Moody’s Overnight Downgrade of Several U.S. Banks

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On Tuesday Wall Street dropped as financial stocks fell following Moody’s overnight credit rating cuts on several U.S. banks and warned it could also downgrade some of the biggest lenders.  Ten small to mid-size U.S. banks’ ratings were cut by one notch and six banking giants, including Bank of New York Mellon, U.S. Bancorp, State Street, and Truist Financial, were placed on review for potential downgrades by the agency.  Sam Stovall, chief investment strategist at CFRA Research, said, “Moody’s putting some banks on warning adds to Fitch’s downgrade of the U.S. Treasury market last week and gives investors additional reason to be cautious.”