Stock market today: Live updates

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Stock market today: Live updates

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Traders on the flooring of the NYSE, July 17, 2023.

Source: NYSE

Stocks pulled away Tuesday as an August sell-off was reignited by a downgrade of the banking sector by credit score company Moody’s.

The Dow Jones Industrial Average was down 342 points, or 1%, led by a decrease in Goldman Sachs The S&P 500 dipped 1.1%, bringing its pullback from its late-July high to more than 3%. The standard is down more than 2.6% forAugust The Nasdaq Composite drew back by 1.5%.

Banks fell broadly after Moody’s devalued the credit score on numerous local banks, consisting of M&T Bank and Pinnacle Financial, mentioning deposit threat, a prospective economic downturn and having a hard time industrial property portfolios. The credit company likewise positioned Bank of N.Y. Mellon and State Street on evaluation for a downgrade.

Goldman Sachs and JPMorgan Chase traded more than 3% and 2% lower, respectively, while the SPDR S&P Bank ETF (KBE) dropped more than 3%.

The SPDR S&P Regional Banking ETF (KRE) likewise moved more than 3%. M&T Bank likewise fell 3.5%. The local bank ETF lost 28% in March in the middle of the failure of Silicon Valley Bank.

“It’s not optional to have good credit ratings, because they need faith,” stated Jay Hatfield, CEO of Infrastructure Capital Advisors, of local banks. “Any sort of reduction of faith in the regional banking system is really terrible for market sentiment.”

Traders likewise parsed through the most recent batch of revenues. UPS shares dropped more than 1% after the shipment giant reported weaker-than-expected profits for the 2nd quarter. The business likewise decreased its full-year profits outlook.

The business revenues season has actually up until now been better-than-anticipated. With 89% of S&P 500 stocks done reporting quarterly outcomes, about four-fifths of them have actually beaten Wall Street’s expectations, according to FactSet. But it appears a great deal of those outcomes were currently priced into the marketplace, offered the pullback the last 2 weeks.

Investors got a brief reprieve from the selling on Monday with the 30- stock Dow publishing its finest day because June15 But that resurgence showed temporary.