A sharp banking selloff gripped Wall Street on Friday, compounding a week dominated by concerns over artificial intelligence-driven economic disruption. Hotter-than-expected producer price data added pressure, clouding the Federal Reserve’s rate-cut path.
By 1:00 p.m. in New York, the Nasdaq 100 was down 0.6%, the S&P 500 fell 0.7%, the Dow Jones Industrial Average tumbled 1.3% and the Russell 2000 declined 2.1%.
Financials led the downturn. Goldman Sachs Group Inc. (NYSE:GS), Wells Fargo & Co. (NYSE:WFC), Bank of America Corp. (NYSE:BAC), Morgan Stanley (NYSE:MS) and Citigroup Inc. (NYSE:C) plunged between 5% and 7%, marking their worst sessions since early April.
The investor anxiety extended to diversified financials. Jefferies Financial Group Inc. (NYSE:JEF) and Western Alliance Bancorp (NYSE:WAL) sank 11%.
Private equity firms traded broadly lower amid impairment fears. Blackstone Inc. (NYSE:BX) dropped 4.58%, Blue Owl Capital Inc. (NYSE:OWL) fell 6.06%, Ares …
