U.S. stocks sank on Tuesday as a downbeat UPS forecast exacerbated investor concerns about a slowing U.S. economy, while a plunge in regional First Republic Bank's deposits added to jitters about the health of the banking sector, Reuters reported. United Parcel Service Inc shares fell 9.8%, on track for their most significant one-day drop in more than eight years after the courier company forecasted full-year revenue at the lower end of its earlier outlook as it navigates a weakening economy. This helped push the Dow Jones Transport Average index down 3.6%, and UPS rival FedEx Corp lost 3%. This added to worries for investors waiting for quarterly results from mega-cap technology companies, including Microsoft Corp. Data showed U.S. consumer confidence fell to a nine-month low in April. The Dow Jones Industrial Average fell 320.58 points, or 0.95%, to 33,554.82; the S&P 500 lost 57.86 points, or 1.40%, at 4,079.18; and the Nasdaq Composite dropped 203.41 points, or 1.69%, to 11,833.80. Materials were the weakest of the S&P 500's 11 major industry sectors, down 2%, followed closely by consumer discretionary and industrials, down around 1.8%. General Motors Co reversed early gains to fall 3.8% after the automaker cautioned that price gains over 2022 would not last as the year goes on, even as it lifted its full-year profit and cash flow forecasts. On the bright side, PepsiCo Inc shares rose 2% after it raised its annual revenue and profit forecasts, helping consumer staples stocks outperform. While estimates for first-quarter S&P 500 earnings have narrowed to a 3.9% decline from expectations for a 5.1% decline at the start of April, according to data gathered by Refinitiv, some of the biggest companies have yet to report results. Shares in Alphabet Inc were down 1%, and Microsoft slipped 1.8% ahead of their results due after the market close. Three-month Treasury yields jumped while longer-duration yields fell as investors balanced worries about the U.S. debt ceiling with rising concerns about the regional banking sector and the possibility of an imminent recession. Declining issues outnumbered advancers on the NYSE by a 4.78-to-1 ratio; on Nasdaq, a 3.39-to-1 ratio favored decliners. The S&P 500 posted 22 new 52-week highs and seven new lows; the Nasdaq Composite recorded 33 new highs and 324 new lows.
