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2017.03.2200:33:00UTC+00​U.S. Lenders' Stocks Tumble as Investors Bets for Policy Boosts Wanes

U.S. bank shares retreated as investors pulled back from a post-election rally on concerns that President Donald Trump would not be able to fulfill his pledges for expansionary fiscal policies for easing tax and regulation.

Shares of Bank of America Corp. lost as much as 5.8 percent, making it the biggest contributor to a 3.9 percent selloff in the S&P bank sub sector and compares with a 5.5 percent decline in the KBW regional bank index. The Benchmark S&P 500 was hit with a 1.2 percent drop as well.

The second biggest underperformer on the banking index was JPMorgan Chase & Co., which lost around 3 percent, while KeyCorp. logged the steepest percentage drop, falling by 6.5 percent.

Investors were concerned that if the current administration cannot pass a healthcare bill that will undergo a vote this week, it would be more difficult for Trump to follow through with his pledges of tax and regulatory overhaul, which has caused bank stocks to rally to their highest levels since the pre-crisis period.

The S&P bank index saw its biggest one-day percentage decline since June 27. It also fell below its crucial 50-day moving average, which is seen to increase selloff by tech investors.

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