Shares of banks and other financial institutions fell as hopes for renewed stability in global markets faded.
"Recent price action is more a reflection of the seasonal January effect and short covering after a tough end to December and a brutal year," said Mike Wilson, strategist at brokerage Morgan Stanley, in a note to clients.
"The reality is that earnings are proving to be even worse than feared based on the data, especially as it relates to margins. Secondly, investors seem to have forgotten the cardinal rule of 'Don't Fight the Fed,'" said Mr. Wilson.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-30-23 1703ET
