Wall Street's main stock indexes closed sharply lower on Tuesday after stronger-than-expected retail sales data stoked worries interest rates could stay higher for longer, while U.S. big banks dropped on a report that Fitch could downgrade some lenders.
Market Snapshot
The S&P 500 dropped 1.16% to end the session at 4,437.86 points. The S&P 500 closed below its 50-day moving average for the first time since March.
The Nasdaq declined 1.14% to 13,631.05 points, while Dow Jones Industrial Average declined 1.02% to 34,946.39 points.
Market Movers
Banks saw the brunt of the selling. A report said ratings agency Fitch could downgrade multiple banks. Shares of JPMorgan Chase fell 2.5%, Bank of America fell 3.2% and Wells Fargo dropped 2.3%.
"The story from Fitch about potential downgrades to multiple U.S. banks (is) weighing on sentiment," said Michael James, managing director of equity trading at Wedbush Securities.
Shares of regional lenders PacWest Bancorp, Zions Bancorp and Western Alliance Bank slipped between 3.7% to 4.5% after the Federal Deposit Insurance Corp's latest regulatory overhaul proposal.
Nvidia: Technology stocks fared slightly better, thanks to 0.4% rise in shares of Nvidia after UBS and Wells Fargo lifted their price targets on the stock.
Nvidia posted its biggest one-day percentage since late May in the previous session following bullish comments from Morgan Stanley, with analysts also saying investors were piling into the stock in the run-up to its earnings next week.
Hot Chinese ADRs slid: U.S.-listed shares of Chinese companies also dropped with e-commerce firm Alibaba Group down 2% and among those leading the slide after another round of disappointing economic data from
Among other stocks: General Motors fell 2.3% after Berkshire Hathaway cut its stake in the automaker.
Warren Buffett's Berkshire disclosed a new investment in homebuilder D.R. Horton, which ended 2.9% higher.
Market News
Singapore's Sea Misses Quarterly Revenue Estimates
Southeast Asian technology firm Sea Ltd missed estimates for second-quarter revenue on Tuesday, as consumers held back spending on Internet and discretionary services.
U.S.-listed shares of Sea tanked 28.68% on Tuesday.
EV Maker VinFast Soars 255% After the Completion of SPAC Merger
VinFast Auto Ltd. and Black Spade Acquisition Co (NYSE: BSAQ) ("Black Spade") yesterday announced the completion of their previously announced business combination (the "Business Combination"). The listed company following the Business Combination is VinFast Auto Ltd., and its shares and warrants commence trading on the Nasdaq Stock Market LLC ("Nasdaq") under the ticker symbols "VFS" and "VFSWW," respectively, on August 15, 2023.
VinFast Auto shares surged 254.64% on Tuesday.
Tencent Music's Quarterly Revenue Rises As More Chinese Users Pay for Music
China's Tencent Music Entertainment Group, said on Tuesday second-quarter revenue rose 5.5% from a year ago, driven by growth in paying users on its Spotify-like music streaming platform and a recovery in the advertising market.
Total revenue of the company, controlled by Chinese tech giant Tencent Holdings Ltd, stood at 7.29 billion yuan ($1.00 billion) in the quarter ended June 30, in line with Wall Street estimates, according to Refinitiv data.
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