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Wednesday's Bank Stocks: Revised growth leads to further declines

Stocks continued to lose ground Wednesday, Feb. 28, as investors considered the likelihood that revised downward growth would be enough to discourage further interest rate increases.

The S&P 500 shrank 1.11% to 2,713.83, the Nasdaq Composite Index fell 0.78% to 7,273.01 and the Dow Jones Industrial Average declined 1.50% to 25,029.20.

Stocks opened higher today after U.S. economic growth was revised down for the fourth quarter of 2017, which may have eased investors' worries about the potential number of interest rate increases that could occur during the year. But indices gave up their morning gains as investors wondered how the revision would impact Federal Reserve Chairman Jerome Powell's upbeat assessment on Tuesday. Powell had said his "personal outlook for the economy has strengthened," which had sent stocks falling on fears that economic growth could increase inflation and lead policymakers to increase interest rates faster or more than the three increases previously signaled.

In addition to the revision of economic growth, U.S. pending home sales slid 4.7% in January from the prior month to their lowest level in more than three years, according to a release from the National Association of Realtors.

Wells Fargo & Co. decreased 1.35% to $58.41, Bank of America Corp. lost 0.71% to $32.10, Citigroup Inc. shrank 1.17% to $75.49 and JPMorgan Chase & Co. fell 1.58% to $115.50.

Fifth Third Bancorp's board authorized the repurchase of up to 100 million of the company's common shares. Shares slipped 0.63% to $33.05.

Guaranty Bancshares Inc. improved 5.77% to $35.55. Signature Bank fell 3.75% to $146.19, Provident Financial Services Inc. lost 2.51% to $24.88 and Great Western Bancorp Inc. declined 2.48% to $40.89.

S&P Dow Jones Indices and S&P Global Market Intelligence are owned by S&P Global Inc.

Market prices and index values are current as of the time of publication and are subject to change.