Mario Tama/Getty Images
- US stocks dropped Tuesday, and the Dow lost more than 260 points at the open.
- Moody's downgraded 10 US banks and also put other firms on downgrade watch.
- Investors will watch for Thursday's release of July inflation data.
US stocks opened lower on Tuesday, with the Dow shedding almost 300 points as investors assess Moody's downgrade of 10 small and mid-sized US banks.
Moody's slashed the credit ratings on the banks on Monday, while also placing several other larger firms under review including Bank of New York Mellon, US Bankcorp, Northern Trust, and State Street.
The rating agency also published negative outlooks for 11 banks, including Citizens Financial and Capital One.
Shares of mega-cap banks were also down on the move, with Bank of America, JPMorgan, and all trading lower by nearly 3% Tuesday morning.