U.S. stocks dropped from a four-month high after the Standard & Poor’s 500 Index traded at the most expensive level in seven months, Treasuries gained for a second day and the dollar strengthened versus most major currencies.

Capital One Financial Corp., U.S. Bancorp and BB&T Corp. tumbled at least 7.5 percent on plans to sell shares to repay government bailout funds. American Express Co. and JPMorgan Chase & Co. slid at least 8 percent following a 23 percent surge in a measure of financial stocks last week. General Motors Corp. dropped 11 percent after saying bankruptcy is more probable than previously thought.

The S&P 500 lost 2.2 percent to 909.24 at 4:53 p.m. in New York. The Dow Jones Industrial Average declined 155.88 points, or 1.8 percent, to 8,418.77. The benchmark 10-year bond yield fell 12 basis points, 0.12 percentage point, to 3.17 percent. Almost five stocks declined for each that rose on the New York Stock Exchange, the broadest sell-off in three weeks.

The dollar advanced to $1.3582 per euro, ending a three-day slide. The greenback also strengthened versus the pound, Mexican peso, Canadian dollar and Swedish krona.

(Bloomberg.com)