Stock Market Sell-Off Continues As Rates Surge, Goldman Sachs Falls 8%

The stock market plunged on Tuesday after Goldman Sachs reported disappointing quarterly earnings, as surging government bond yields hit two-year highs.

Firms warned of rising expenses as bank earnings continued to disappoint.

Richard Drew is an Associated Press photographer.

The S&P 500 lost 1.6% and the tech-laden Nasdaq lost 1.8% as the blue-chip index fell around 500 points.

Goldman's fourth-quarter earnings came in below expectations, and the bank's shares plunged 8%.

Goldman also reported rising expenses which hurt their bottom line, with the bank's operating expenses surging 23% due to "significantly higher" pay for employees.

The 2-year yield broke above 1% for the first time in over a year, right before the economy was hit by the Pandemic.

The 10-year Treasury note hit 1.85%, its highest level since January 2020.

Tech stocks continued to be under pressure on Tuesday, with Amazon falling 2% and Meta Platforms losing 4%.

Continue watching after the ad Visit Advertiser website.

Microsoft announced a takeover of the gaming company that is behind the wildly successful "Call of Duty" franchise. Microsoft will become the third-largest gaming company by revenue once the deal closes.

Bank of America and Morgan Stanley reported their earnings on Wednesday. The market reaction to Wall Street banks has been mixed so far. Despite better-than-expected profits, shares of Citigroup and JP Morgan Chase fell on Friday as investors worried about rising expenses. Despite solid headline numbers, the quarterly reports underwhelmed investors as firms warned about higher expenses and inflation which could impact future profits.

The quote is crucial.

Vital Knowledge founder Adam Crisafulli says that stocks are for sale across the board. For the second time in as many trading days, markets are getting spooked by a big financial earnings disappointment and growing concerns about the outlook for corporate margins.

The key background is.

The stock market has struggled so far in 2022. The S&P 500 has declined over 4% in January, while the tech-laden Nasdaq has declined more than 7%. Markets have been weighed down by investor concerns about surging inflation and tighter monetary policy from the Federal Reserve.

Big bank stocks are struggling despite good earnings.

There is a reason why stocks are doing well despite another Dire Inflation Report.

Powell said the Fed wouldn't be afraid to raise rates if inflation goes up.

Take-Two announced a $12.7 billion takeover of Zynga.