Dow falls almost 400 points Tuesday, post biggest daily drop in 3 weeks

The Dow and S&P 500 closed lower on Tuesday to kick off a holiday-shortened week that has investors focused on mixed earnings reports from major banks. The Dow Jones Industrial Average shed about 391 points Tuesday, or 1.1%, ending near 33,911, matching its biggest daily percentage drop since Dec. 28, according to a preliminary FactSet reading. The S&P 500 fell 0.2% and the Nasdaq Composite Index rose 0.1%. Morgan Stanley reported results that beat analyst expectations for the fourth-quarter, but those of Goldman Sachs disappointed. Corporate earnings have been a key focus for investors monitoring signs of a looming U.S. economic recession, which could threaten the modest rally seen in stocks to kick off 2023. The yield on the 10-year Treasury rose 2.4 basis points to 3.543% on Tuesday, down from its one-year high of 4.360% in October, according to Dow Jones Market Data.

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