US stocks drop as First Republic revives bank worries and investors await big tech earnings
- US stocks declined the most in a month on Tuesday.
- Traders digested banking sector woes and braced for big tech earnings.
US stocks fell the most in a month on Tuesday ahead of big tech earnings and as concerns were renewed over the health of the banking sector.
First Republic Bank shares plunged 49% to an all-time low. The regional lender nosedived after reporting greater-than-expected customer withdrawals for the first three months of 2023. The bank is exploring a broader rescue plan that would involve $100 billion in assets sales, Bloomberg reported.
Other banking peers including Western Alliance Bancorp and PacWest shed 5% and 8%, respectively.
The volatile price action comes amid prolonged worries over the financial sector's stability after the downfall of both Silicon Valley Bank and Signature Bank last month.
Major winners included Spotify, whose stock jumped over 5% after reporting better-than-expected subscriber numbers for the quarter.
Alphabet and Microsoft were set to post fiscal results after the close, the first of several mega-cap tech companies expected to report this week.
Here's where US indexes stood shortly after the 4:00 p.m. ET close on Tuesday:
- S&P 500: 4,071.71, down 1.58%
- Dow Jones Industrial Average: 33,531.72, down 1.01% (343.68 points)
- Nasdaq Composite: 11,799.16. down 1.98%
Here's what else happened today:
- The GameStop saga is getting a movie, which will feature A-list actors like Seth Rogen and Nick Offerman.
- The US stock market hasn't fully priced in Federal Reserve's interest rate hikes yet, a BlackRock strategist says, citing the looming downside in equities investing.
Terraform Labs cofounder Daniel Shin was indicted by South Korea on Tuesday, Bloomberg reported.
- The US housing market is on the verge of bottoming and that should help the economy avoid a bad recession, according to Morgan Stanley.
- The Conference Board's Leading Economic Index fell further last month, indicating a recession could hit in mid-2023.
- TinyTap, an education technology startup and Animoca Brands' subsidiary, secured an $8.5 million funding round, Insider has learned.
In commodities, bonds and crypto:
- Gas stoves create more nanoparticle pollution than a busy street with diesel and gas cars, study finds
- Climate change could cause millions of children to be born prematurely, suffer lifelong complications
- Markets record rally makes investors richer by ₹4.29 lakh crore
- From undernutrition to obesity, Lancet study unveils India's double whammy
- GST collections in February rise 12.5% to cross ₹1.68 lakh crore