Wall Street slumps with markets worldwide over worries concerning banks, the economy

Published

2 years ago

August 9, 2023

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Stocks are slumping Tuesday as more caution creeps into financial markets worldwide.

The S&P 500 was 1% lower in early trading, following up on losses for stocks across Europe and much of Asia.

The Dow Jones Industrial Average was down 370 points, or 1%, at 35,102, as of 9:50 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.

In the U.S., bank stocks dropped after Moodys cut the credit ratings for several smaller and midsized ones amid a long list of concerns about their financial strength.

Across the Pacific, stocks sank 1.8% in Hong Kong and 0.3% in Shanghai after a report showed exports for Chinas 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 U.S. companies.

UPS fell 3% after it cut its forecast for revenue this year. It reported stronger profit for the spring but weaker revenue.

Eli Lilly helped to limit the markets losses after jumping 16.4%.

The medicine developer reported profit and revenue for the spring that both topped analysts expectations.

More jolts may be ahead for markets.

The U.S. government later in the morning will report how many job opening were available across the country in June, a test of how resilient the job market remains.

Economists expect a separate report to show U.S. manufacturing continues to struggle under the weight of much higher interest rates.

The Federal Reserve has hiked its main interest rate to the highest level in more than two decades in hopes of grinding down inflation.

High rates work by slowing the entire economy bluntly, which has raised the risk of a recession but also helped inflation to moderate since its peak last summer.

Besides manufacturing, high rates have hit banks particularly hard. Moodys said the rapid rise in rates has led to conditions that hurt profits for the broad industry, while knocking down the value of investments made when rates were super low.

Such conditions helped cause three high-profile failures for three U.S. banks earlier in the spring, which shook confidence in the system.

Moodys also said troubles may be coming for banks with lots of commercial real estate loans, which are hurting as the threat of a U.S. recession remains and work-from-home trends keep people out of offices.

M&T Bank, one of the banks whose credit rating Moodys downgraded, fell 4.7%.

Truist Financial, one of the banks that Moodys said its reviewing for a possible downgrade, fell 4.5%.

Other, larger banks whose credit ratings weren’t affected also sank.

JPMorgan Chase fell 2% and was one of the heavier weights on the S&P 500.

Later this week, the U.S. government will releases data on consumer and wholesale inflation, which could influence what the Federal Reserve does next with interest rates.

The hope on Wall Street is that the cooldown in inflation since its peak above 9% last summer will help persuade the Fed that upward pressure on prices is under control and no more rate hikes are needed.

Forecasters expect Thursdays data to show consumer prices rose by 3.3% in July over a year ago, an acceleration from Junes 3%.

But some economists and investors say getting that list bit of inflation moderation to the Fed’s target of 2% is likely to be the most difficult.

They’re saying Wall Street has become convinced too quickly that the Fed can achieve a soft landing for the economy and that the 19.5% run for the S&:P 500 through the first seven months of this year was overdone.

In the bond market, Treasury yields tumbled as investors moved into investments considered safer.

The yield on the 10-year Treasury fell to 3.98% from 4.10% late Monday. It helps set rates for mortgages and other loans.

The two-year Treasury yield, which more closely tracks expectations for the Fed, fell to 4.73% from 4.79%.

Sports

Stockton fuels comeback as UGA topples Ole Miss

Published

54 mins ago

October 19, 2025

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Stockton fuels comeback as UGA topples Ole Miss

Associated Press

Oct 18, 2025, 07:09 PM ET

Gunner Stockton passed for 289 yards and four touchdowns, including three to tight end Lawson Luckie, and No. 9 Georgia overcame Trinidad Chambliss and No. 5 Mississippi’s powerful offense to rally for a 43-35 win over the Rebels on Saturday.

Georgia (6-1, 4-1 Southeastern Conference) rallied after trailing 35-26 at the start of the fourth quarter. Stockton’s 7-yard touchdown pass to Luckie with 7:29 remaining gave Georgia a 40-35 lead.

Ole Miss (6-1, 3-1) was denied its first road win over a top 10 team under coach Lane Kiffin even though the Rebels scored touchdowns on their first five possessions.

Stockton completed 26 of 31 passes and added a 22-yard scoring run in the crucial SEC showdown.

“It was a great day,” Stockton said. “We just played for each other and that’s the best part of our team.”

Stockton and the Bulldogs had no turnovers.

In previewing the game, Kiffin said winning at Georgia would mean the Rebels have taken “another step” in their move up the SEC. That looked likely when they scored touchdowns on each of their first five possessions, taking a nine-point lead in the third quarter.

Suddenly, the Ole Miss offense lost its magic as Georgia did not give up another first down.

Following the first punt of the game by either team with 12:44 remaining, Stockton led a nine-play, 67-yard drive capped by the 7-yard scoring pass to Luckie that gave the Bulldogs their first lead of the second half.

Following another stop by Georgia’s defense, Stockton led a 10-play drive to set up Peyton Woodring‘s third field goal of the game, a 42-yarder, to stretch the lead to eight points with 2:06 remaining.

World

Hamas hands over bodies of two more hostages, Israel confirms

Published

54 mins ago

October 19, 2025

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Hamas hands over bodies of two more hostages, Israel confirms

Israel has received the bodies of two more hostages from the Red Cross, the Israeli prime minister’s office has confirmed.

Shortly after 10pm UK time on Saturday, Israel’s military said Hamas handed over “two coffins of deceased hostages”.

There has been no identification of the bodies yet.

The news came as tensions were beginning to rise over the closure of the Rafah border crossing between Gaza and Egypt.

Benjamin Netanyahu‘s office had said earlier on Saturday evening that it would stay closed “until further notice” – as the deadline for Hamas to return the bodies of the hostages had passed with no confirmation.

Mr Netanyahu had warned that its reopening would depend on how Hamas fulfilled its role in returning the remains of all 28 dead hostages.

The handover brings the count of returned bodies to 12 hostages, up from 10, according to Israel’s tally. Another 16 deceased hostages would then still have to be returned.

All 28 were supposed to have been handed over by last Monday.

The handover of remains is among key points – along with aid deliveries into Gaza and the devastated territory’s future – in the ceasefire process meant to end two years of war.

Israel’s foreign ministry had originally said the Rafah crossing would likely reopen on Sunday – another step in the fragile ceasefire. This has now been revised to being closed “until further notice”.

A fully reopened crossing would make it easier for Gazans to seek medical treatment, travel internationally or visit family in Egypt, which is home to tens of thousands of Palestinians.

It is unclear who will operate the crossing’s heavily damaged Gaza side once the war ends.

Meanwhile, Gaza’s ruins were being scoured for the dead, over a week into a ceasefire. Newly recovered bodies brought the Palestinian toll above 68,000, according to Gaza’s Health Ministry.

The ministry, part of the Hamas-run government, does not distinguish between civilians and combatants in its count. But the ministry maintains detailed casualty records that are seen as generally reliable by UN agencies and independent experts.

Famine declared

Israel has disputed them without providing its own toll.

Hamas-led militants killed around 1,200 people, mostly civilians, and abducted 251 people in the attack on southern Israel that sparked the war on October 7 2023.

Gaza’s more than two million people are hoping the ceasefire will bring relief from the humanitarian disaster caused by Israel’s offensive. Throughout the war, Israel restricted aid entry to Gaza – sometimes halting it altogether.

Famine was declared in Gaza City, and the UN says it has verified more than 400 people who died of malnutrition-related causes, including more than 100 children.

Officials in Israel say they have let in enough food, accusing Hamas of stealing much of it. The UN and other aid agencies deny this claim.

Technology

Close to half of Kalshi user base experienced glitches, delays during Saturday college football games

Published

3 hours ago

October 18, 2025

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Close to half of Kalshi user base experienced glitches, delays during Saturday college football games

The Kalshi logo arranged on a laptop in New York, US, on Monday, Feb. 10, 2025.

Gabby Jones | Bloomberg | Getty Images

Close to half of Kalshi’s user base experienced glitches and delays on Saturday during college football games, a major source of trades, as some said they were temporarily unable to process orders.

In a message sent to a user obtained by CNBC, the predictions market service’s website apologized for any inconvenience and said it was “looking into” the issues traders were experiencing.

“The Exchange is experiencing temporary delays,” the message read. “Balances and positions may not be accurately reflected at this time.”

One user shared a screen recording and screenshots with CNBC that showed they were unable to see their balance or bets while the issues persisted.

A number of users on X reported the website was down when they were trying to place bets on college football games, with some saying they had open orders that wouldn’t process. When CNBC visited the website, it wouldn’t load, showing only a green K with a spinning circle around it for more than 20 minutes. The platform later loaded.

“Earlier today, Kalshi experienced minor glitches that temporarily affected some user experiences. No exchange outage occurred, no funds were affected, and the issues are now resolved,” the company said in a statement.

Earlier, a spokesperson denied there was an outage and said the exchange “never stopped functioning properly.” He added that there has been no impact on clearing, advanced trading, or institutional trading.

“There were some glitches and delays on our web and app product, which affected less than half of our user base,” the spokesperson said.

A little over a week ago, Kalshi announced a $300 million Series D funding round that valued the company at $5 billion, more than double its $2 billion valuation in June after its Series C round.

The round was co-led by Andreessen Horowitz (a16z) and Sequoia Capital, with participation from Paradigm. Additional backers included Coinbase Ventures, General Catalyst, Spark Capital and CapitalG.

The company, founded in 2018, rose to prominence by offering bettors the ability to trade on a wide range of real-world events, from football games to who President Donald Trump could pardon this year.

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