NEW YORK – Wall Street’s main stock indexes closed sharply lower on Tuesday after stronger-than-expected retail sales data stoked worries interest rates could stay higher for longer, while U.S. big banks dropped on a report that Fitch could downgrade some lenders.
The Commerce Department report showed retail sales grew 0.7 percent last month against expectations of a 0.4-percent rise, suggesting the U.S. economy remains strong.
After the data, traders’ bets of a pause on hikes by the Federal Reserve next month stayed intact at 89 percent, yet analysts said investors were worried rates could stay at current levels longer than anticipated.
Banks saw the brunt of the selling as…
Keep on reading: Wall St ends lower; strong retail sales stoke interest rate worries
