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OK, everybody out of the pool.
Stocks snapped their winning streak Thursday as investors cashed in their bank chips.
After a three-day run that pushed the Dow Jones Industrial Average up 3.7 percent, stocks retreated, giving back two-thirds of that gain. The S&P 500 and Nasdaq also fell sharply.
The profit-taking eclipsed some good news out of the Capitol: The House passed the stimulus bill, handing President Barack Obama the first major legislative victory of his tenure. And government officials have discussed pouring a further $1 trillion to $2 trillion to help backstop the banking system, the Wall Street Journal said, citing people familiar with the matter. And the Federal Reserve signaled it would keep interest rates near zero for quite “some time” and would continue to use unconventional tools to battle the fallout.
But investors were done with cheering the stimulus, having bought on the run-up. Today, it was sell on the news.
Banks tanked: Bank of America [ BAC 16.70 
-0.42 (-2.45%) ] was the biggest drag on the Dow. Citigroup [ C 3.975 -0.205 (-4.90%) ], American Express [ AXP 40.69 
+0.58 (+1.45%) ] and Wells Fargo [ WFC 29.60 -0.16 (-0.54%) ] all fell sharply.
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