Associated Press
NEW YORK — Spooked traders unraveled a rally in stocks late Wednesday as a downbeat assessment of a bank touched off fears that the market is getting overheated.
The Dow Jones industrial average ended down 92 points after having risen 78 points earlier in the day to a new high for the year.
Analysts pointed to a note on Wells Fargo & Co. from banking analyst Richard Bove as the source of the drop, but also said a mix of complacency and lingering concerns about the pace of the market’s climb in the past seven months left stocks ripe for a hit.
Joe Saluzzi, co-head of equity trading at Themis Trading LLC, said the note was a reminder of troubles still in the economy and was enough to scare many traders.
“They all ran for the exits at the same time,” he said.