The Standard & Poor’s 500 Index wiped out its gains for the year as banks sank after reporting earnings while a drop in retail sales reignited concern about the economy and a second health worker in Texas caught Ebola.
KeyCorp retreated 7.9 percent, the biggest drop in the S&P 500, after the lender’s quarterly revenue trailed analysts estimates. Bank of America Corp. sank 5.6 percent after revenue declined. A group of bank shares in the S&P 500 lost 4.7 percent, the most since 2012. Intel Corp., JPMorgan Chase & Co. and Walt Disney Co. fell more than 3.3 percent to lead losses in the Dow Jones Industrial Average.
The S&P 500 tumbled 2.2 percent to 1,837.07 at 12:45 p.m. in New York. The index is down 0.5 percent for the year and has lost 8.5 percent since a record on Sept. 18. The Dow fell 331.56 points, or 2 percent to 15,983.63. The Nasdaq Composite Index sank 1.7 percent.
“The economy isn’t as strong as perhaps everyone thought,” Bruce Bittles, chief investment strategist at Milwaukee-based RW Baird & Co., which oversees $110 billion, said in a phone interview. “The concern here is that the weakness in Europe and Asia is going to be exported to the U.S. and our economy is going to be negatively impacted.”
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