Wall Street is slipping as large banks are dragged down. Boeing and Apple Weigh in By Reuters

© Reuters. FILE PHOTO: Traders work on the New York Stock Exchange (NYSE), January 9, 2024. REUTERS/Brendan McDermid/File Photo

Johann M Cherian, Ankika Biswas

(Reuters) – Wall Street’s major indexes fell on Tuesday as mixed results from Morgan Stanley and Goldman Sachs put pressure on banks, with Boeing (NYSE:) and Apple (NASDAQ:) also falling.

Morgan Stanley fell 3.5% to its lowest level in more than a month after a decline in quarterly profit, while Goldman Sachs announced a 51% increase in profits, sending its stock price up 1.6%.

Other lenders such as Wells Fargo, Bank of America, Citigroup and JPMorgan Chase (NYSE:) also fell between 0.9% and 1.9%. Most reported lower earnings on Friday.

On Tuesday, the comprehensive banking index fell to its lowest level in more than a month.

Among them, Apple fell 1.6% after offering rare discounts on iPhones in China due to competitive pressure. It’s only been a few days since it was overtaken by Microsoft (NASDAQ:) as the world’s most valuable company.

Also dampening sentiment was Federal Reserve Governor Christopher Waller’s statement that he was confident inflation would reach the 2% target but that there should be no rush to cut interest rates.

After this remark, traders became hopeful that the Federal Reserve would cut interest rates starting in March, and US Treasury yields also rose. (Us/)

“Central banks around the world are starting to push back against more aggressive interest rate cuts,” said Nick Zamparelli, chief investment officer at Sequoia Financial Group.

Wall Street closed higher last week as investors continued to hold out hope for an early start to the Federal Reserve’s monetary policy easing cycle despite a lack of support from policymakers and mixed inflation data.

“What we’re hearing from many policymakers is that… it’s still too early to declare victory on inflation. This is clearly a headwind for risk assets, which are pricing in a much more accommodative monetary policy stance.” said.

UBS Global Research on Tuesday raised its 2024 year-end target to 5,150 points, more than 8% above current levels.

Even after briefly breaking previous record highs last week, the benchmark index faces resistance to breaking the intraday high reached in January 2022.

At 11:58 a.m. ET, the S&P 500 was trading down 210.48 points, or 0.56%, at 37,382.50, while the S&P 500 was trading down 16.27 points, or 0.34%, at 4,767.56 and 36.87 points, or 0.25%, at 14,935.89.

Nvidia (NASDAQ:) and Advanced Micro Devices (NASDAQ:) rose 3.1% and 7.9%, respectively, as Wall Street analysts raised their price targets on the semiconductor giants as investors grew more optimistic about growing demand for artificial intelligence-based chips. has risen. .

Dow Jones shares fell 7.7% to a two-month low after the Federal Aviation Administration indefinitely extended the grounding of its 737 MAX 9 aircraft and brokerage Wells Fargo downgraded the stock to “equal weight.” The index fell to a one-week low. “overweight”.

Applied Digital fell 23.0% after the data center services provider reported weak second-quarter revenue.

Declining stocks outnumbered rising stocks, with a ratio of 3.27:1 on the NYSE and 2.53:1 on the NASDAQ.

The S&P index recorded 23 new 52-week lows and 23 new lows, and the Nasdaq recorded 48 new records and 128 new lows.