Stock Market Today: Banks Burned as Stocks Break Sharply Lower

The Fed's limitations on big banks' dividends and share buybacks coupled with swelling COVID-19 caseloads to weigh heavily on stocks Friday.

(Image credit: Getty Images)

The stock market tug-of-war we mentioned on Thursday? Well, the bears bit into the rope and pulled hard on Friday.

The Federal Reserve, following an annual "stress test" that revealed potential capital issues in coronavirus-related scenarios, voted to mandate limiting dividends and stock buybacks at the nation's large banks during the third quarter. "Big Four" banks including Wells Fargo (WFC, -7.4%) and Bank of America (BAC, -6.4%) gave up Thursday's gains and then some.

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Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for, and the Managing Editor for before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.