FRC - Stocks Stagger on Bank Weakness

Stocks slipped Tuesday after First Republic Bank's earnings report reignited concerns about the broader sector.

The Dow Jones Industrials lost their grip on 331.88 points, or 1%, to 33,543.52.

The S&P 500 shed 65.33 points, or 1.6%, to 4,071.71.

The NASDAQ faltered 238.05 points, or 2%, to 11,799.16.

Shares of First Republic Bank tumbled more than 40% after the regional bank posted its latest quarterly results, saying late Monday that deposits dropped 40% to $104.5 billion in the first quarter but have since stabilized. First Republic will also be trimming expenses, including slashing headcount by 20% to 25% in the second quarter. Bloomberg News reported Tuesday that the bank was trying to sell as much as $100 billion of loans and securities to restructure its balance sheet.

The regional bank has been closely followed after investors grew concerned it could face the same fate as Silicon Valley Bank and Signature Bank, whose closures set off an industry crisis last month. First Republic shares have fallen more than 90% so far this year.

Western Alliance Bancorp lost 7% and PacWest slid 8%, while Charles Schwab shed almost 4%. The market fell in symphony as First Republic shares notched new lows in afternoon trading.

Microsoft and Alphabet are slated to report Tuesday after the bell, the first of multiple Big Tech names on the earnings schedule this week.

But those stocks could struggle, according to Jay Hatfield, chief investment officer at Infrastructure Capital Management, after rallying earlier this year

Alphabet shares fell 1% ahead of the Google-parent's earnings after the market closes. The company has been on an earnings cold streak, missing Wall Street estimates the last four quarters, according to experts.

Prices for the 10-year Treasury jumped, lowering yields to 3.39% from Monday's 3.50%. Treasury prices and yields move in opposite directions.

Oil prices plummeted $1.65 to $77.11 U.S. a barrel.

Gold prices hiked $9.60 to $2,009.40 U.S. an ounce.