Investing.com – The selloff on Wall Street deepened as Financials led the decline following sharply after shares of Wells Fargo tumbled more than 8%, while a fall in crude oil prices weighed on energy.
The Dow Jones Industrial Average closed lower at 24345.68. The S&P 500 closed 4.10% lower, while the Nasdaq Composite closed at 6967.53, down 3.78%. The Dow Jones tumbled nearly 1,600 points to its lowest since Nov. 28.
Energy was one of the worst performers of the session falling more than 3% after oil prices extended their slide from last week, settling 2% lower at $64.15.
Shares of Wells Fargo (NYSE:WFC) closed more than 8% lower after the Fed, late Friday, said that it capped Wells Fargo’s assets prohibiting the bank from growing any larger than its total assets as of the end of 2017.
The move from the Fed was in response to the Wall Street bank's “widespread consumer abuses.”
Bullish ISM services data, meanwhile, provided markets with a brief period of respite before the selloff resumed in earnest.
ISM nonmanufacturing data for January showed an uptick to 59.9, beating expectations of 56.5.
Analysts said the strong ISM reading was indicative of a strong economic activity, which could strengthen further, should tax-reform measures lead to a solid rise in consumption.
“The reading today is consistent with an economy that is growing close to 3%,” Bank of Tokyo Mitsubishi said. “If consumers and companies spend the tax reform monies like they are supposed to, this could be the best year for the economy since the housing bubble years in the mid-2000s.”
'Bulls and Bears' on Wall Street
Boeing Co (NYSE:BA) down 5.74%, Exxon Mobil Corporation (NYSE:XOM) down 5.69%, and 3M Company (NYSE:MMM) down 5.60%, were among the worst Dow performers of the session.