Moody s been in the news lately. yesterday downgraded several u.s. banks, regional banks. so should investors be concerned there could be some more banking sector pain ahead? so probably not. this is really just a reaction to what happened a little bit earlier this year, what we saw out of the banking sector, particularly the likes of mnt bank, webster financials, those were getting downgrade at least one notch on the back of how things had looked for regional lenders earlier this year. you ll remember the svb s situation that certainly happened and that effect of the regional lenders because of the higher interest rates and how that s impacting their books. but some of the bigger banks and even northern trust have also taken a bit of a hit only because they re now on review for a possible downgrade.
Shares in goldman sachs fell 2%. the catalyst was moody s, downgrading the credit rating on several small and medium sized us banks, including mnt bank and pinnacle financial. the red flags raised by the ratings agency included a potential recession, as well as problems tied to the commercial real estate sector. as one analyst put it, any doubts about regional banking is bad for market sentiment. that wasn t helped by data from new york federal reserve, which showed that for the first time, americans owed more than $1 trillion on their credit cards. traders have also been focused on corporate results, which so far have been better than expected. that was true for lyft, which reported results after the us market closed. uber s small arrival is forecasting higher revenue in the third quarter based in part on a post pandemic rebound in ridesharing. meanwhile, electric vehicle maker rivium posted a narrower lost than expeted and raised its production guidance for the full year.