Banks stock took a broad hit in premarket trading Wednesday, as an inversion in the closely watched 2-year-10-year Treasury yield spread stoked fears of an impending credit crunch. The SPDR Financial Select Sector ETF XLF, +1.03% dropped 1.9% ahead of the open, as all of the components seeing premarket activity lost ground. Among the biggest declines, shares of Regions Financial Corp. RF, +2.23% fell 3.2%, Citigroup Inc. C, -0.40% slid 3.0% and Bank of America Corp. BAC, +0.64% shed 3.0%. Elsewhere, the stocks of J.P. Morgan Chase & Co. JPM, +0.87% and Goldman Sachs Group Inc. GS, -0.08% both dropped 2.6%, and were the leading early losers among Dow Jones Industrial Average DJIA, +1.33% components. Meanwhile, Dow industrials futures ymu9 tumbled 344 points, or 1.3%. An inverted yield curve can hurt bank profits, as it can make the usual practice of borrowing shorter term to lend longer term is no longer profitable.