What is causing the US stocks to decline and banks to fall as a result of concerns over Fitch’s downgrades? What factors are influencing the market on Tuesday?

The sentiment remained negative on Tuesday as the US stock market traded in the red. This was influenced by poor Chinese data and Fitch’s warning of possible downgrades for major US banks like JP Morgan Chase & Co. Retail sales in July, which were higher than expected, failed to lift stocks. The President of the Minneapolis Fed, Neel Kashkari, suggested that the Fed needs to analyze more data before making decisions on further rate increases and emphasized the need to avoid early rate hikes like those in the 1970s. In terms of index performance, the S&P 500, Dow Jones Industrial Average, Nasdaq 100, and Russell 2000 all experienced declines. Analysts also noted that the US debt situation is unlikely to cause as much market volatility as seen in 2011, but they believe that stocks have exceeded their justified value and a pullback of 5-10% is necessary. Various equity ETFs also experienced losses, with all eleven S&P 500 sectors weakening. Notable companies like Lucid Group, Tesla, Nvidia, and PayPal also saw changes in their stock prices. In commodities, crude oil and gold fell, while treasury yields remained steady and the dollar depreciated. European equity indexes closed in the red as well.