Goldman Sachs, Bank Of America Shares Slump As Treasury Yields Drop

By Tomi KilgoreMarketWatch Pulse

Goldman Sachs Group Inc.'s stock is tumbling 4.9%, as a broad-market selloff and a sharp drop in Treasury yields weighs heavily on the financial sector. Goldman's stock price decline of $7.78 is shaving off about 53 points from the Dow Jones Industrial Average , which is down 282 points. The yield on the 10-year Treasury note has dropped to a 9 1/2-month low of 1.864%. Declines in longer-term rates often hurt banks, as it lowers the spread they earn from funding fund longer-term loans with shorter-term borrowings. Among other financial sector heavyweights, Bank of America Corp.'s stock is slumping 5.5%; volume of 125.6 million shares makes it the NYSE's most-active issue. Elsewhere, shares of Dow component J.P. Morgan Chase & Co. are shedding 3.1%, of Citigroup Inc. are sliding 4.8% and of Wells Fargo & Co. are giving up 1.9%.

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