Stock market today: Dow ends lower as Moody's bank downgrade bites
Investing.com — The Dow cut some losses but closed lower Tuesday, as bank stocks fell after credit rating agency Moody’s downgraded the debt ratings on a slew of U.S. banks on concerns about pressures on profit.
The Dow Jones Industrial Average fell 0.5%, or 158 points, the S&P 500 fell 0.4%, and Nasdaq fell 0.8%
Moody’s downgraded the ratings of 10 banks by one notch and placed six banks including US Bancorp (NYSE:USB), and State Street (NYSE:STT) on review for downgrades.
The ratings agency said second-quarter results from the banks showed “growing profitability pressures that will reduce their ability to generate internal capital.”
Bank stocks cut some losses, but ended the day lower, with Bank of America Corp (NYSE:BAC), Huntington Bancshares (NASDAQ:HBAN), and Citizens Financial (NYSE:CFG) down more than 1%.
Big tech including Meta Platforms Inc (NASDAQ:META) and Microsoft (NASDAQ:MSFT) were a drag on tech as recent concerns about valuation and a rise in Treasury yields persist.
As well as weakness in big tech, a more than 1% fall in semiconductor stocks was paced by declines in Advanced Micro Devices Inc (NASDAQ:AMD), Marvell Technology Group Ltd (NASDAQ:MRVL) and Novanta.
Novanta Inc (NASDAQ:NOVT) fell more than 11% after the semiconductor equipment maker cut its annual guidance as headwinds including reduced IT infrastructure spending and weakness in China are expected to intensify in the second half of the year.
Chegg Inc (NYSE:CHGG) reported a beat on quarterly revenue and stoked investor optimism by detailing plans to make a further push into generative artificial intelligence to ward off the threat from ChatGPT. Its shares ended more than 4% higher.
Some on Wall Street, however, want to see further evidence
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