US stocks slipped on Thursday as some positive economic data failed to counter lingering geopolitical concerns, although losses were limited as the end of the quarter approached. Markets were also pressured by a steep drop in Citigroup Inc shares, which suffered their biggest daily decline since November 2012 after the Federal Reserve rejected the bank's capital plan. The S&P financial index lost 0.9 percent and was the worst-performing sector.
In addition, Exxon Mobil Corp gained 1.1 percent to $95.71 after Bank of America Merrill Lynch boosted its rating on the stock to "buy." Citigroup tumbled 5.8 percent to $47.25 a day after the Fed rejected the bank's plan to buy back $6.4 billion of shares and boost dividends, saying it wasn't sufficiently prepared to handle a potential financial crisis. A source close to the matter told Reuters that Citi officials had not expected the rejection.
The Fed also rejected Zions Bancorp's plan late on Wednesday. Shares of Zions Bancorp slid 1.2 percent to $29.84 by midday on Thursday. The Dow Jones industrial average fell 3.70 points or 0.02 percent, to 16,265.29. The S&P 500 lost 3.92 points or 0.21 percent, to stand at 1,848.64. The Nasdaq Composite dropped 20.923 points or 0.5 percent, to 4,152.655.