New York (AFP) - Wall Street stocks finished sharply lower Tuesday after dismal First Republic results revived worries about banks, adding to recession fears following lackluster US consumer data.
US stocks were in the red the entire day following a mixed session in Asia and Europe, but losses accelerated in the final hours of trading.
All three major indices tumbled, with the S&P 500 ending down 1.6 percent.
"Stocks had been languishing in tight trading ranges for several session before finally making an outsized move today," said a closing market note from Briefing.com.
Regional US banks were top of mind after First Republic disclosed it lost more than $100 billion in deposits in the first quarter, intensifying concerns about its long-term prospects after the failures of Silicon Valley Bank (SVB) and two other mid-sized banks.
Shares of First Republic plunged 49 percent, pressuring other regional banks that have been seen as vulnerable.
Analysts also cited a downcast report from UPS, which warned investors that its full-year results would be on the "low end" of its earlier forecast due to "challenging macro conditions and changes in consumer behavior."
"UPS’ forecast of a weaker economy is just the kind of warning investors don't want to hear, and has likely prompted a round of selling on renewed recession fears," said Chris Beauchamp, chief market analyst at online trading platform IG
Meanwhile, the Conference Board reported a bigger than expected drop in consumer confidence in April, fueled by a deterioration in expectations among Americans over 55 and households with annual incomes over $50,000.
"Compared to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months," said Ataman Ozyildirim, senior director of economics at the Conference Board.
In Europe, Frankfurt stocks edged higher, while London and Paris fell.
Following recent shocks in the banking sector, UBS on Tuesday posted an underwhelming first quarter net profit of $1.0 billion but insisted it had seen strong client inflows as it prepared to integrate its stricken rival Credit Suisse.
Shares in UBS, Switzerland's biggest bank, fell around four percent in early trading following the announcement, but clawed back to close down around 2.2 percent.
Asian markets ended mostly lower, with Hong Kong falling sharply on the back of major losses in Chinese firms, as a lack of clear direction ahead of key announcements this week presented a challenge for global investors.
It was the third straight day of losses on the Hang Seng Index, with Alibaba Group Holdings down more than three percent, internet giant Baidu down nearly four and pharmaceutical maker Wuxi Biologics dropping almost seven.
"Investors seem to be having concerns about the sustainability of the recovery in China and the heightening of geopolitical tensions," Redmond Wong, of Saxo Capital Markets HK, told Bloomberg.
Key figures around 2100 GMT
New York - Dow: DOWN 1.0 percent at 33,530.83 (close)
New York - S&P 500: DOWN 1.6 percent at 4,071.63 (close)
New York - Nasdaq: DOWN 2.0 percent at 11,799.16 (close)
London - FTSE 100: DOWN 0.3 percent at 7,891.13 (close)
Frankfurt - DAX 40: UP 0.1 percent at 15,872.13 (close)
Paris - CAC 40: DOWN 0.6 percent at 7,531.61 (close)
EURO STOXX 50: DOWN 0.5 percent at 4,377.85 (close)
Hong Kong - Hang Seng Index: DOWN 1.7 percent at 19,617.88 (close)
Shanghai - Composite: DOWN 0.3 percent at 3,264.87 (close)
Tokyo - Nikkei 225: UP 0.1 percent at 28,620.07 (close)
Euro/dollar: DOWN at $1.0975 from $1.1046 on Monday
Pound/dollar: DOWN at $1.2409 from $1.2486
Dollar/yen: Down at 133.73 yen from 134.24 yen
Euro/pound: DOWN at 88.40 pence from 88.47 pence
West Texas Intermediate: DOWN 2.1 percent at $77.07 per barrel
Brent North Sea crude: DOWN 2.4 percent at $80.77 per barrel
burs-jmb/dw
