Shares of U.S. banks dropped on Friday, with Wells Fargo’s stock falling more than 6% and Goldman Sachs Group Inc down 7%, after the Federal Reserve capped dividend payments and barred share buybacks until at least the fourth quarter after its annual stress test. The S&P 500 banks index <.SPXBK> was down more than 5% and the S&P 500 financials index <.SPSY> dropped nearly 4%, making it the biggest drag on the S&P 500 <.SPX> in Friday’s broad market selloff. The drop in bank shares is in part tied to worries about how well the economy is likely to recover from the impact of the coronavirus pandemic, said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
