: Financial stocks weaken on multiple headwinds

Financial stocks are among the worst-performers in the S&P 500 SPX on Tuesday, after more than one fresh challenge in the sector. FDIC Chairman Martin Gruenberg said large regional banks should face new rules and tougher oversight. Fitch analyst Chris Wolfe said the debt rating agency may be forced to downgrade many U.S. banks after a ratings watch it posted in June. If Fitch downgrades the industry by one notch to AA- from A+ it would have to reevaluate ratings on more than 70 U.S. banks it covers, Wolfe said in an interview with CNBC-TV. In a third development, Discover Financial Services DFS fell 9% as the worst performer in the S&P 500 after it said its Chief Executive Roger C. Hochschild had resigned. Among bank stocks with the most red ink in the S&P 500, KeyCorp KEY was down 4.2%, Comerica Inc. CMA was down by 4.6%, Citizens Financial Group Inc. CFG was down by 4%, Capital One Financial Corp. COF was down by 2.4%, Fifth Third Bancorp FITB was down by 3.1%, Zions Bancorp ZION was down by 3.7%, Truist Financial Corp. TFC was down by 3% and M&T Bank Corp. MTB was off by 2.8%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.