- U.S. equities indexes moved lower on April 25, 2023, on resurfacing concerns about the stability of the banking sector.
- The Nasdaq dropped nearly 2%, while the S&P 500 and the Dow were down around 1.6% and 1%, respectively, in Tuesday trading.
- Shares of United Parcel Service (UPS) fell 10% as the company noted declining demand in March.
U.S. equities sank as financial struggles at First Republic Bank (FRC) renewed concerns about the health of the banking sector. The Dow lost 1%, the S&P 500 dipped 1.6%, and the Nasdaq was off 2%. Bond yields also tumbled.
Shares of First Republic Bank (FRC) plunged to an all-time low as deposits fell more than anticipated and the bank took measures to shore up its capital position. The news sent shares of other regional banks down as well. Shares of Northern Trust (NTRS) dropped after the wealth manager also reported a decline in deposits and missed earnings and revenue forecasts.
United Parcel Service (UPS) shares slipped 10% after the biggest U.S. package delivery firm indicated that demand dropped in March as consumers spent less. Shares of rival FedEx (FDX) also lost ground. Packaging Corporation of America (PKG) shares slid as the packaging manufacturer's profit and sales came in short of estimates.
Dow (DOW) shares dropped 5% after the chemical giant posted a first quarter net loss. Worries about the economy dragged oil futures down 2%, pulling shares of Chevron (CVX) and other oil and gas producers lower.
Shares of Alphabet (GOOGL) and Microsoft (MSFT) declined in the regular session but rose in extended trading following release of their earnings reports. PepsiCo (PEP) and Kimberly-Clark (KMB) had better-than-expected quarterly results and raised their guidance, and shares of both gained. Brown & Brown (BRO) was the best-performing stock in the S&P 500 as the insurer's revenue soared 23%.
Gold prices gained. The U.S. dollar was up on the euro and pound but fell versus the yen. Most major cryptocurrencies traded higher.