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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%.

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Astros’ Trammell won’t face discipline for bat

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Astros' Trammell won't face discipline for bat

ARLINGTON, Texas — Houston Astros outfielder Taylor Trammell is facing no discipline from Major League Baseball after umpires confiscated his two-color bat when New York Yankees manager Aaron Boone asked for it to be checked following a double.

Trammell said Friday, a day after the incident in the ninth inning of the Astros’ 8-4 loss to New York, that he had spoken with MLB officials. Trammell said he understood and appreciated their explanation of what happened because of some discoloration on the dark-colored barrel of the bat.

“We see it a lot with some guys who may have a wristband on or something like that, and just got to take it off. So, it’s nothing crazy, didn’t impact the ball or anything like that,” Trammell said before the American League West-leading Astros opened a series in Texas. “It was more so of an aesthetic of the eye, so that was basically the only thing.”

MLB regulations require a two-color bat to be divided into two sections, each of one solid color. That discoloration, while not likely to impact the performance, made it a nonconforming bat.

During the lengthy delay in the ninth inning Thursday night in Houston, both managers talked to plate umpire Adrian Johnson. The umpire then spoke with the replay office in New York before handing the bat to an official who was sitting near home plate.

Boone said Friday that he had asked umpires to check the bat only after it was brought to his attention that something didn’t look right about it.

“Frankly, that was something hard for me to do because I don’t think Taylor was up to anything. I really don’t,” Boone said. “In the moment, I felt like a duty to at least check in for my team. But, you know, I’m frankly satisfied with the ruling, the explanation.”

Trammell, who appeared in five games for the Yankees last season before going to Houston in November, said he wasn’t sure if he would get the bat back from MLB. But he would like to have it.

“I probably would just want it, to have it just because I can have a story to tell my grandkids about it. It’s kind of a cool, funny little story,” he said. “I don’t know if they’ll give it back. They put a sticker on it so it’s authenticated at least. … So, somebody is going to have it.”

Asked about his bats for the series against the playoff-chasing Rangers, Trammell held up the bat he had just used in batting practice.

“I’m making sure like there’s no chipping, there’s a little mark here,” he said, noting a small spot. “We’ve moved on. Like I said, respect for both organizations, and glad how everything kind of turned out.”

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Ohtani shines as surprise fill-in, but Dodgers fall

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Ohtani shines as surprise fill-in, but Dodgers fall

BALTIMORE — Shohei Ohtani tossed 3⅔ shutout innings Friday night in a surprise start for the Los Angeles Dodgers against Baltimore after teammate Tyler Glasnow was scratched due to back stiffness.

Ohtani threw 70 pitches, 44 for strikes, and reached 101.5 mph with his four-seam fastball against Orioles third baseman Emmanuel Rivera. The 31-year-old right-hander allowed three hits and a walk while striking out five, but the slumping Dodgers lost 2-1 in the opener of a three-game series.

Los Angeles dropped its fourth straight but remained two games up in the NL West over skidding San Diego.

Left-hander Anthony Banda replaced Ohtani in the fourth with Ryan Mountcastle at third base. Banda walked Dylan Beavers but then retired Samuel Basallo on a grounder to end the inning.

Dodgers teammate Freddie Freeman appreciated Ohtani’s effort on short notice.

“You could see he’s exhausted after an inning or two,” Freeman said. “It’s muggy. He’s still not healthy. He’s still sick. He gave it his all. It’s amazing what he’s doing. He’s throwing 100, 101 mph. We will be saying this every year about Shohei Ohtani until he retires. He’s a unicorn. He pitched great. Everything he had in that fourth inning to get out of it.”

Ohtani was scratched from his previous turn Wednesday due to a cough, and manager Dave Roberts projected the five-time All-Star would pitch fewer than five innings Friday.

“I was able to get my high-intensity catch play in yesterday so I felt pretty good chiming in today,” Ohtani said through an interpreter. “I was contacted around 2 o’clock and was told if I could potentially start today.

“I actually felt really good coming into the game today. Probably the worst I felt was game one and game two in Pittsburgh. I started to feel a lot better my last day in Pittsburgh.”

The two-way superstar threw five innings of two-hit ball his last time out on Aug. 27, allowing one run with nine strikeouts for his first win of the season in a 5-1 decision over the Cincinnati Reds.

Roberts saw Ohtani’s pitch count rising in the fourth and decided to go get him.

“I just felt that the pitch count was high,” Roberts said. “Initially, I was thinking four [innings] and 60 [pitches] for him. He was north of that. Even leading up to the fourth inning there was a lot of stress and a lot of high-velocity pitches. For me, I’m not going to risk him just to get another hitter where we have a guy that’s fresh that I felt needs to be able to get those lefties out. If it was a normal situation where it wasn’t short notice, then I would’ve let him get that hitter. We will have time to push him [later this season].”

Glasnow felt discomfort late Thursday night when the team plane landed. The back issue cropped up when he arrived at the ballpark and the right-hander is day-to-day, Roberts said.

“I think it’s just more of trusting the player and also knowing that he wants to be out there and feeling like we got ahead of it early,” Roberts said. “It’s not something that we got to a point where he’s hurt. It’s back stiffness. We feel like to not take this start will allow him to be able to start hopefully early next week.”

Ohtani batted leadoff Friday as the designated hitter again, and Roberts said the three-time MVP wanted to be a critical piece to ending the club’s slide.

“Shohei, to his credit, wants to pick us up,” Roberts said. “I really admire him for that.”

All-Star catcher Will Smith still has some swelling in his right hand and did not play. Roberts believes Smith will have to play through the bone bruise for the rest of the season.

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Angels prospect in critical condition after car crash

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Angels prospect in critical condition after car crash

RICHLAND, Wash. — Los Angeles Angels minor leaguer Rio Foster was in critical condition after a car accident early Friday morning.

The Angels said Foster was involved in a car accident and that the outfielder is “receiving medical care at a local hospital and remains in critical condition.”

Foster plays for the High-A Tri-City Dust Devils in Pasco. Tri-City canceled its game against Hillsboro on Friday night.

“The thoughts and prayers of the entire Dust Devils organization are with Rio Foster who was a passenger in a car accident early this morning and sustained serious injuries,” the Dust Devils posted on social media.

Foster, 22, was a 16th-round pick in the 2023 draft out of Florence-Darlington Technical College in South Carolina. He’s batting .267 with 10 homers and 40 RBIs this season and was the Northwest League player of the month for August.

“We’re praying for the best — that’s all we can do,” Angels interim manager Ray Montgomery said before Friday night’s game against the Athletics. “Unfortunately, I’m working on limited [information] … what I do know is it’s obviously way more important than anything we’re doing here today.

“I’m just thinking about him and his family. He’s a great kid. We had him in spring training. He was a little bit of a later round draft pick, and he’s done some good things. We saw him in spring training, and he was named [Northwest League] player of the month recently, so his career is in a good spot.”

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