U.S. stocks are falling after bank downgrades pressure sector
Investing.com — U.S. stocks were falling on Tuesday, handing back some of the previous session’s strong gains as investors awaited the release of a fresh batch of corporate earnings.
By 9:38 ET (13:38 GMT), the Dow Jones Industrial Average was down 273 points or 0.8%, while the S&P 500 was down 0.7% and the NASDAQ Composite was down 0.9%.
The benchmark Wall Street indices started the new week on a positive note Monday, with the blue chip Dow Jones Industrial Average jumping more than 400 points, or 1.2%, its next highest day since mid-June. The tech-heavy Nasdaq Composite gained 0.6% and the broad-based S&P 500 rose 0.9%, both breaking a four-session losing streak.
Additionally, the banking sector will be in the spotlight after Moody's cut the ratings of 10 smaller banks by one notch and placed six banking giants, including Bank of New York Mellon (NYSE:BK), US Bancorp (NYSE:USB), State Street (NYSE:STT) and Truist Financial (NYSE:TFC), on review for potential downgrades.
The KBW Bank index was down 3.7%.
The quarterly corporate earnings season is coming to an end, with roughly 85% of S&P 500 stocks having reported results to date. These have tended to be positive, as about 85% of them have beaten Wall Street’s expectations, according to FactSet.
Still, there are a number of significant companies still due to report, with investors keen to receive any updates from Eli Lilly (NYSE:LLY) around the regulatory approval process for its treatment for Alzheimer's disease, while the logistics firm United Parcel Service (NYSE:UPS) posted an 11% slump in second-quarter revenue as the logistics firm was hit by weaker U.S. packaging demand. Shares of Lilly jumped 13%, while shares of UPS fell 1.8%.
Elsewhere, big data firm Palantir
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