Shares of banks and other financial institutions fell sharply after a disappointing round of bank earnings.
Shares of JPMorgan Chase, the largest U.S. bank by assets, fell by 6.5%, one of its largest declines in recent years, after interest income growth lagged Wall Street expectations.
Shares of global bank Citigroup fell slightly as trading activity weighed on its quarterly profit.
Shares of once-troubled Wells Fargo rallied after it reported earnings growth ahead of Wall Street targets.
Volatility in global markets persisted, as investors are adjusted to the likelihood that the Federal Reserve will hike rates in March, according to several Wall Street brokerages.
"The Fed has clearly come to the realization that it is behind the curve, and has a lot of catching up to do," said strategists at brokerage Jefferies, in a note to clients.
"Thus, risks are now asymmetrically skewed toward more tightening."
Investment firm Warburg Pincus is seeking to raise up to $2 billion to bolster its investment in automated-manufacturing concern Duravant, The Wall Street Journal reported.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-14-22 1718ET
