Worries About Banks, World Economy Hit Markets

Moody's cuts credit ratings for 10 small to midsized American banks
By Newser Editors and Wire Services
Posted Aug 8, 2023 3:59 PM CDT
Worries About Banks Drag Markets Down
Storm clouds form above the New York Stock Exchange building in New York City, Tuesday, Aug. 8, 2023.   (AP Photo/J. David Ake)

Wall Street slipped Tuesday as worries about the banking system and the global economy forced more caution into financial markets worldwide. The S&P 500 fell 19.06, or 0.4%, to 4,499.38 and at one point was down nearly triple that. It was the fifth loss in the last six days for the index after it rocketed through the year's first seven months. The Dow Jones Industrial Average fell 158.64, or 0.4%, to 35,314.49 after paring an earlier loss of 465 points. The Nasdaq composite lost 110.07, or 0.8%, to 13,884.32.

In the US bank stocks fell after Moody's cut the credit ratings for 10 smaller and midsized ones. It cited a list of concerns about their financial strength, from the effects of higher interest rates to the work-from-home trend that's leaving office buildings vacant, the AP reports. Across the Pacific, stocks sank after a report showed exports for China's troubled economy shrank by the most since the start of the pandemic in 2020. The worries layered on top of a mixed set of earnings reports from big US companies. Beyond Meat tumbled 14.3% after its revenue weakened by more during the spring than analysts expected. Demand is softening for its plant-based products.

Software company Palantir Technologies gave up some of its big gains for the year after it reported results for the spring that only matched analysts' expectations. It fell 5.3%, though it's still up more than 165% for the year so far on expectations for tremendous growth. It's one of the companies that's been riding Wall Street's frenzy around artificial-intelligence technology. Helping to limit the stock market's losses was Eli Lilly, which jumped 14.9% . It reported profit and revenue for the spring that topped analysts' expectations. It benefited from booming sales for its diabetes treatment Mounjaro, which is widely used for weight loss.

(More stock market stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.