Wall Street Drops as JP Morgan Leads Bank Stocks Lower

Banks led a slide in U.S. stocks, as results from big lenders including JP Morgan failed to enthuse investors keeping a wary eye on Russsia's plan to consider banning some U.S. imports.

Shares of the biggest U.S. bank by assets dropped 2.6 percent, overturning an initial gain in premarket trading when the bank reported a record quarterly profit that fell slightly short of expectations.

Wells Fargo sank 3.1 percent, also erasing initial gains, after the bank said it may have to pay a penalty of $1 billion to resolve investigations.

Citigroup and the S&P banks index also fell around 2.5 percent and the broader S&P financial index lost 1.3 percent, making it the biggest decliner among the 11 major S&P sectors.

Analysts cast the losses as driven in part by a bullish 10 days for the lenders, whose shares have generally been shakier in 2018 after doubling in value in a little over 18 months.

"This is the exception, and not the norm, to have good reports and stocks sell off," said Art Hogan, chief market strategist at B. Riley FBR in Boston.

"But we did see the banks ramp up, over the last couple of days into these reports, sort of buy the rumour sell on the news is not unusual for the group."