by Sinéad Carew, Sruthi Shankar and Ankika Biswas

(Reuters) – The New York Stock Exchange ended lower on Tuesday as a disappointing UPS forecast stoked investor concerns over a slowing economy, while a slump in customer deposits at First Republic Bank reignited fears about the health of the US banking sector.

The Dow Jones index fell 1.02%, or 344.57 points, to 33,530.83 points.

The broader S&P-500 fell 65.41 points, or 1.58%, to 4,071.63 points.

The Nasdaq Composite fell for its part by 238.05 points (1.98%) to 11,799.16 points.

Wall Street’s major indexes recorded their largest single-session decline this month.

Awaiting post-closing earnings releases from tech giants Microsoft and Alphabet, investors were pessimistic about United Parcel Service’s announcement of expected annual revenue at the lower end of its initial range, on background of economic downturn.

UPS fell 10% and marked its largest one-session decline since July 2006.

If the quarterly results of S&P-500 companies are now expected to be down 3.9% over one year, against -5.1% previously, according to Refinitiv data, some heavyweights have not yet communicated their results.

“Investors are valiantly trying to weather the storm in this week of important earnings and economic data ahead of the big Federal Reserve meeting next week,” said Carol Schleif, chief investment officer at BMO Family Office in Chicago.

They are trying to “analyze every piece of data” to determine the direction the US central bank could take, she added. Traders are mostly anticipating a further 25 basis point interest rate hike.

Data released today showed US consumer confidence fell to a nine-month low in April as lawmakers in the US Congress appeared headed for a tussle over raising the debt ceiling. public.

The assumption of a default on the debt encourages not to take risks, declared Brian Price, director of Commonwealth Financial Network, in Boston. “If we get any closer, it doesn’t bode well for risky assets or consumer confidence,” he added.

The S&P-500 banking index fell in the wake of First Republic Bank’s tumble, falling 49% – to a record low – after it reported a drop in customer deposits of more than 100 billion in the first quarter.

While FRB was among the banks that fell into turmoil last month, amid the biggest banking crisis since 2008, “people are trying to determine the health of regional banks in general,” said Carol Schleif, because it is “very important for SMEs in the country”.

( Jean Terzian)

Copyright © 2023 Thomson Reuters