Shares of banks and other financial institutions fell as the S&P 500 teetered on the brink of bear-market territory.
The Federal Reserve no longer has the stock market's back, said one strategist.
"As the stock market goes down, the Fed can't ease policy as long as inflation remains their main concern, and if the stock market rises significantly then the Fed will see that as an impediment to their inflation goals and will be emboldened to raise rates even higher," said Chris Zaccarelli, chief investment officer for financial advisory the Independent Advisor Alliance.
Crypto exchange FTX will let customers trade stocks and exchange-traded funds on its popular trading app alongside bitcoin and dogecoin.
Tighter financial conditions may slow economic growth, and some people who left the labor force could return due to lost wealth, but "any incremental impact from the recent declines in cryptocurrency prices will likely be modest," said analysts at brokerage Goldman Sachs Group, in a note to clients.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-19-22 1713ET
