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US stocks drop as First Republic revives bank worries and investors await big tech earnings

US stock market tradersFirst Republic plunged 44% intraday, bring its stock price to all-time low.

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  • US stocks declined the most in a month on Tuesday.
  • Traders digested banking sector woes and braced for big tech earnings.
  • First Republic stock fell to a record low after reports of a rescue plan that involves $100 billion in asset sales.

US stocks fell the most in a month on Tuesday ahead of big tech earnings and as concerns were renewed over the health of the banking sector. 

First Republic Bank shares plunged 49% to an all-time low. The regional lender nosedived after reporting greater-than-expected customer withdrawals for the first three months of 2023. The bank is exploring a broader rescue plan that would involve $100 billion in assets sales, Bloomberg reported.

Other banking peers including Western Alliance Bancorp and PacWest shed 5% and 8%, respectively. 

The volatile price action comes amid prolonged worries over the financial sector’s stability after the downfall of both Silicon Valley Bank and Signature Bank last month.

Major winners included Spotify, whose stock jumped over 5% after reporting better-than-expected subscriber numbers for the quarter. 

Alphabet and Microsoft were set to post fiscal results after the close, the first of several mega-cap tech companies expected to report this week. 

Here’s where US indexes stood shortly after the 4:00 p.m. ET close on Tuesday:

Here’s what else happened today:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil fell 2% to $77.10 per barrel. Brent crude, oil’s international benchmark, declined 2.45% to $80.70 a barrel.
  • Gold rose 0.4% to $2,007.5 per ounce.
  • The yield on the 10-year Treasury dropped 10 basis points to 3.396%.
  • Bitcoin rose 0.68% to $27,562.
Read the original article on Business Insider