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The stock market tumbled on Tuesday after Goldman Sachs reported disappointing quarterly earnings – continuing a trend of lackluster bank results while government bond yields hit 2-year highs.

Important facts

The Dow Jones Industrial Average fell 1.5%, around 550 points, while the S&P 500 lost 1.6% and the tech-heavy Nasdaq Composite lost 1.8%.

Goldman Sachs shares plunged over 8% after the bank reported disappointing fourth-quarter results, with earnings falling below expectations and falling 13% from a year earlier.

Similar to peers JPMorgan Chase and Citigroup, Goldman also reported rising expenses that hurt its bottom line, with the bank’s operating expenses rising 23% on “significantly higher” employee salaries.

Government bond yields, meanwhile, continued to post strong gains as the 2-year yield broke above 1% for the first time since February 2020, just before the pandemic sent the economy into recession.

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

Tech stocks remained under pressure on Tuesday, extending a poor run into 2022 as rates rose: Amazon fell over 2%, while Meta Platforms, formerly Facebook, fell almost 4%.