Banks Falling 24% Since May Foreshadow S&P 500 Slump

Declines of more than 20 percent in regional banks and homebuilders and the failure of transportation companies to erase their annual loss may be signs the rally in the Standard & Poor’s 500 Index is about to fizzle.

Smaller lenders in the gauge have lost 24 percent since climbing to a four-month peak on May 8, while builders have tumbled 26 percent from May 4, when they reached the highest level since October. Concern that mortgage rates, credit losses and foreclosures are increasing spurred retreats in the companies forecast to be among the biggest beneficiaries of $12.8 trillion in government stimulus spending...

Bloomberg: Banks Falling 24% Since May Foreshadow S&P 500 Slump