August 09, 2023 / 07:41 AM IST

Sensex Today | Wall Street ends lower after bank rating cuts spark wider sell-off

All three major Wall Street benchmarks finished lower on Tuesday in a broad sell-off after the downgrading of several lenders by credit rating agency Moody's reignited fears about the health of U.S. banks and the economy.

After a five-month rally pushed the benchmark S&P 500 and Nasdaq Composite within 5% of their lifetime highs, August has now recorded five losing sessions out of six. The S&P is down 2% this month, with the Nasdaq dropping 3.2%.

Tuesday's decline was triggered after the agency cut ratings on 10 small- to mid-sized lenders by one notch and placed six banking giants, including Bank of New York Mellon, U.S. Bancorp, State Street and Truist Financial, on review for potential downgrades.

The Dow Jones Industrial Average fell 158.64 points, or 0.45%, to 35,314.49, the S&P 500 lost 19.06 points, or 0.42%, at 4,499.38 and the Nasdaq Composite dropped 110.07 points, or 0.79%, to 13,884.32.