Regional banks dipped into bear market territory Tuesday as long-term interest rates sank amid concerns of waning economic activity and falling inflation expectations.
Shares of SunTrust, Citizens Financial Group, Fifth Third Bancorp and Regions Financial all fell more than 5 percent Tuesday as the yield on the benchmark 30-year Treasury bond dropped 11 basis points and the yield on the 10-year Treasury note fell 8 basis points. PNC Financial also dropped 4.7 percent and was on pace for its worst day since Oct. 12.
Regions Financial, SunTrust Citizens Financial and Capital One all closed at lows not seen in more than one year.
The SPDR S&P Regional Banking ETF lost 5.5 percent and fell into bear market territory, more than 20 percent off its all-time high notched in June. The ETF posted its worst day since June 2016 and Brexit.