NEW YORK: Wall Street stocks fell Tuesday pulled down by major banks after the Federal Reserve signalled more stringent capital requirements.
At the closing bell, the Dow Jones Industrial Average stood at 17,014.70, down 96.72 points (0.57 percent).
The broad-based S&P 500 dropped 13.07 (0.65 percent) to 1,988.47, while the tech-rich Nasdaq Composite Index fell 40.00 (0.87 percent) to 4,552.29.
Dow members JPMorgan Chase and Goldman Sachs fell by 1.4 percent and 1.5 percent, respectively, and Morgan Stanley sank 2.7 percent after a top US Fed official said the largest banks with high dependence on short-term funding would have tougher capital rules, to ensure they do not place the financial system at risk.
The market was lower in early trade and the losses accelerated in the afternoon after Apple, the largest US company by market capitalization, unveiled new iPhones, a mobile-payment system and a smartwatch.
Jack Ablin, chief investment officer at BMO Private Bank, said investors appeared to be disappointed; Apple's shares ended down 0.4 percent.
"Investors have come to expect game-changers from this company and anything short of that is a disappointment," he said.
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