Stocks fell on Thursday amid criticism of the Federal Reserve by President Donald Trump. A decline in bank shares also pushed the broader market down.
The Dow Jones Industrial Average dropped 134.79 points to close at 25,064.50, with Travelers Cos. and American Express lagging. The S&P 500 slipped 0.4 percent to 2,804.49, with financials dropping more than 1 percent. The Nasdaq Composite also pulled back 0.4 percent to 7,825.30.
In an exclusive interview with CNBC's Joe Kernen, Trump said he was not thrilled the Fed was raising rates. “Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”
"I think the market will ignore it because (Fed Chairman Jerome) Powell will ignore it," said Maris Ogg, president at Tower Bridge Advisors. "He’s a real estate guy… he’s going to think rates going up are a bad thing no matter what."
Fed officials, including Powell, have raised interest rates twice this year and have pointed to two more before the end of 2018.
“We’ll see if it transpires that the President actually calls Chairman Powell,” said Quincy Krosby, chief market strategist at Prudential Financial. “Many commentators have suggested early on – as it became clear that the Fed, under Chairman Powell was intent on normalizing rates whether it was going to be two rate hikes or four rate hikes – this what the intention of the Fed as, on the whole, conditions are positive for raising rates and while the underlying economy is still strong.”
Bank shares fell broadly as interest rates declined. J.P. Morgan Chase, Citigroup, Bank of America and Morgan Stanley all declined by more than 1 percent. Their declines sent the Financials Select Sector SPDR Fund down by 1.5 percent. The 10-year Treasury note yield fell to 2.83 percent.
Wall Street also digested looked at the latest batch of corporate earnings being released, while trade fears simmered.
IBM shares rose more than 3 percent after the Dow component reported earnings and revenue that surpassed expectations. American Express, another Dow member, posted a profit that was just above estimates, while sales came in slightly below estimates. Shares of American Express fell 2.7 percent.
Shares of eBay fell more than 10 percent after the company posted revenue and guidance that disappointed investors. Earnings, however, topped estimates. Tech giant Microsoft is scheduled to report earnings after the close.