Stock futures kicked off the overnight session slightly lower following an afternoon rally on Wall Street.
Shares of big banks including Goldman Sachs and Wells Fargo traded lower after hours, after the Federal Reserve said in its stress test results Thursday after market close that it would restrict dividends and share buybacks on financial companies for the third quarter. The move is intended to “ensure large banks remain resilient despite the economic uncertainty from the coronavirus event,” according to the Fed.
Earlier during the regular session Thursday, the financials sector had led the S&P 500’s advances, after regulators eased constraints over certain bank investments, which had first been implemented after the global financial crisis.
Meanwhile, further increases in coronavirus cases in some parts of the country stirred up investor consternation, with signs increasingly pointing to a chaotic reopening process. The governor of Texas – one of the first states to