Markets Right Now: Washington turmoil unnerves markets

The latest on developments in financial markets (All times local):

4:00 p.m.

Stocks fell sharply as investors worried that the latest turmoil in Washington could hinder President Donald Trump's pro-business agenda.

The steep drop Wednesday was the market's worst since September and ended an unusually long period of calm.

Banks, which soared in the months since the election, slumped. Bank of America lost 5.9 percent.

Bonds, utilities and gold rose as traders shunned riskier assets. The dollar fell.

The Standard & Poor's 500 dropped 43 points, or 1.8 percent, to 2,357.

The Dow Jones industrial average lost 372 points, or 1.8 percent, to 20,606. The Nasdaq fell 158 points, or 2.6 percent, to 6,011, a day after its latest record high.

Small-company stocks, which would stand to benefit greatly from Trumps' proposed tax cuts, fell more than the rest of the market.

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11:45 a.m.

Banks are leading U.S. stock indexes sharply lower in midday trading as bond yields fall, which will mean lower interest rates on loans.

Investors fretted Wednesday that the latest turmoil in Washington could hinder President Donald Trump's pro-business agenda.

Bank of America sank 4.5 percent and JPMorgan Chase fell 2.7 percent.

Target jumped 2 percent after posting surprisingly strong earnings for the first quarter.

The Standard & Poor's 500 index slumped 26 points, or 1.1 percent, to 2,373.

The Dow Jones industrial average lost 252 points, or 1.2 percent, to 20,727. The Nasdaq composite fell 100 points, or 1.6 percent, to 6,070.

Small-company stocks fell more than the rest of the market. Those companies would stand to benefit even more than large ones from corporate tax cuts Trump is proposing.

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9:35 a.m.

Stocks are opening lower on Wall Street as banks and industrial companies fall.

Banks were sliding along with bond yields early Wednesday. Bank of America sank 2.7 percent and Wells Fargo lost 2 percent. Falling bond yields mean lower interest rates on loans and tighter profits for banks.

Among industrial companies, United Rentals fell 3 percent.

Target jumped 3.6 percent after posting surprisingly strong earnings for the first quarter.

The Standard & Poor's 500 index slumped 16 points, or 0.7 percent, to 2,383.

The Dow Jones industrial average lost 159 points, or 0.8 percent, to 20,817. The Nasdaq composite fell 49 points, or 0.8 percent, to 6,120.