(Corrects to clarify U.S. Department of Justice is demanding a
$14 billion settlement in talks with Deutsche Bank, but has not
yet levied a fine. Changes throughout)
* Deutsche fine risk weighs on bank stocks
* Oracle drops, Intel rises on contrasting forecasts
* Quadruple witching day likely to lead to volatility
* Indexes down: Dow 0.40 pct, S&P 0.47 pct, Nasdaq 0.27 pct
By Yashaswini Swamynathan
Sept 16 Wall Street was near session lows late
on Friday morning as Oracle led a decline in tech stocks and
financials came under pressure on the possibility that Deutsche
Bank could face a $14 billion fine.
The settlement proposal, made during negotiations between
the U.S. Department of Justice and Deutsche Bank over claims
that the German bank missold mortgage-backed securities, was
larger than expected. Deutsche's U.S.-listed shares were
down 9.2 percent.
Dow components Goldman Sachs and JPMorgan
fell 1.2 percent each. The S&P 500 financial index
dropped 0.98 percent, the steepest among the 10 major S&P
The KBW Bank index fell 1.25 percent, putting it on
track for its biggest weekly decline since the Brexit vote in
Traders have all but ruled out the possibility of the
Federal Reserve raising interest rates at its meeting that
starts next Tuesday.
But, investors will carefully parse the Fed's comments on
the recent sluggish economic data and its impact on when the
central bank will eventually pull the trigger.
At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial
Average was down 72.62 points, or 0.4 percent, at
The S&P 500 was down 10.01 points, or 0.47 percent,
The Nasdaq Composite was down 14.19 points, or 0.27
percent, at 5,235.50.
Oracle dropped 3.9 percent and pulled down other
technology stocks after the company issued a disappointing
Also weighing was a 0.5 percent drop in Apple, that
was set to snap a four-day winning streak, as Asia gave the
iPhone 7 a subdued welcome.
Helping limit losses was Intel's 2.5 percent gain
after the chipmaker raised its third-quarter revenue forecast.
The CBOE Market Volatility index was up 0.61 percent.
The index, commonly called Wall Street's "fear gauge", has
fallen only twice this week.
Volatility was likely rise as investors unwind interests in
futures and options contracts prior to expiration - a process
known as quadruple witching.
Declining issues outnumbered advancing ones on the NYSE by
2,033 to 809. On the Nasdaq, 1,531 issues fell and 1,121
The S&P 500 index showed three new 52-week highs and no new
lows, while the Nasdaq recorded 49 new highs and 27 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by