The Wall Street market experienced a slight decline on Tuesday due to concerns about the banking system and the global economy. This cautious sentiment was felt across financial markets worldwide. The S&P 500 dropped 0.4%, or 19.06 points, to 4,499.38. At one point, it was down almost three times that amount. This marks the fifth loss in the past six days for the index, following an impressive performance in the first seven months of the year. The Dow Jones Industrial Average decreased by 0.4%, or 158.64 points, to 35,314.49 after recovering from an earlier loss of 465 points. The Nasdaq composite also fell, losing 0.8% or 110.07 points, to 13,884.32.
Moody’s decision to lower the credit ratings for 10 smaller and midsized US banks resulted in a decline of bank stocks. The credit rating agency expressed concerns about their financial strength due to various factors such as higher interest rates and the impact of the work-from-home trend causing vacant office buildings, according to the AP. Meanwhile, stocks in China dropped as a result of a report indicating a significant decline in exports for the economy, the largest since the pandemic started in 2020. These worries, coupled with mixed earnings reports from major US companies, added to the cautious market sentiment. Vegan meat company Beyond Meat saw a 14.3% decline in its stock value after its spring revenue fell short of analyst expectations. Demand for its plant-based products has been weakening in recent months.
Despite reporting results for the spring that met analysts’ expectations, software company Palantir Technologies experienced a 5.3% drop in its stock value. However, the company has still seen a considerable increase of over 165% in its stock value this year, driven by expectations of significant growth in the field of artificial intelligence. On a positive note, Eli Lilly managed to limit the overall stock market losses by jumping 14.9%. The pharmaceutical company reported profits and revenue for the spring that exceeded analysts’ expectations. Its diabetes treatment, Mounjaro, has experienced booming sales and is widely used for weight loss purposes.
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