Stocks Opened Lower, Bank Shares Dropped after Stress Test

U.S. stocks opened lower on Friday as investors digested grim news on the spread of COVID-19 and the fallout from the Federal Reserve’s bank stress tests. The Dow Jones Industrial Average lately fell 197.26 points, or 0.77%, to 25,548.3. The S&P 500 lost 15.24 points, or 0.49%, to 3,068.52. The Nasdaq Composite was down 31.15 points, or 0.31%, to 9,985.86.

Oil futures saw muted gains on Friday as a record rise in coronavirus cases in the U.S. and growing infections in parts of the world signaled a hard slog for a fuller recovery in crude-oil ddemand over the longer term. West Texas Intermediate crude for August picked up 13 cents, or 0.3%, at $38.85 a barrel. Brent oil for August delivery added 29 cents, or 0.7%, to reach $41.41 a barrel.

Shares of big banks including Goldman Sachs and Wells Fargo traded lower in early trading, 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.