Bank stocks fell on Tuesday in the wake of the Federal Reserve's emergency rate cut, with Bank of America  (BAC) - Get Report, Wells Fargo  (WFC) - Get Report and PNC Financial  (PNC) - Get Report leading the way down.

At last check shares of PNC dropped 5% to $126.02, Bank of America fell 4.9% to $27.92, and Wells Fargo declined 4.2% to $40.49.

The Fed's decision to slash interest rates by half a percentage point was designed to offset the growing economic disruption caused by the coronavirus.

Also taking some hits were Morgan Stanley  (MS) - Get Report, down 3.1% to $45.02 a share, JPMorgan  (JPM) - Get Report, off 3% to $117.88, and Citigroup,  (C) - Get Report, which dropped 2.2% to $66.13 a share.

Goldman Sachs  (GS) - Get Report and Toronto-based TD Bank  (TD) - Get Report fared a bit better. Goldman, which is making a big push into digital consumer banking, edged down 1.7% to $205.90, while TD Bank's stock fell 1.6% to $51.38 a share.

Bucking the sector's decline, shares of US Bancorp  (USB) - Get Report, rose 1.1% to $25.62.

The Fed's rate cuts are expected to squeeze the bottom lines at banks. The drop in rates is expected to compress the spread between short-term and long-term lending rates, while also positioning banks to shell out more for deposits than the market rate.

The Fed Tuesday morning cut interest rates to 1.25%, down from 1.75%, in the first emergency cut since late 2008 during the financial crisis.

JPMorgan had gotten a boost on Monday when Piper Sandler analyst Jeffery Harte hiked his rating on the megabank's stock to overweight.