Share

Dow closes more than 250 points lower Wednesday after Fed hikes rates for a 10th time: Live updates

Eli Lilly stock hits new high after successful drug study. Here's how the pros are playing it
VIDEO1:5601:56
Eli Lilly hits new high after successful drug study. How the pros are playing it

Stocks fell Wednesday after the Federal Reserve raised rates by 25 basis points, as was widely expected.

The Dow Jones Industrial Average closed lower by 270.29 points, or 0.80%, to end at 33,414.24. The S&P 500 dropped 0.70% to close at 4,090.75. The Nasdaq Composite slid 0.46% to close at 12,025.33. The indexes notched three-day losing streaks.

Earlier bullish sentiment was dented somewhat after Fed Chair Jerome Powell ruled out cutting interest rates because he did not expect inflation to come down quickly enough.

"In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed said in a statement.

However, traders noticed what the Fed didn't say this time in its post-meeting statement. The central bank appeared to soften its language about future rate increases by dropping a line from the March statement that said, "the Committee anticipates that some additional policy firming may be appropriate."

Powell commented to the press after the statement's release that dropping that language was a "meaningful change" and that the central bank's June decision would be driven by incoming data.

Ed Moya, senior market analyst at Oanda said Wednesday's rate increase, which marks the central bank's 10th consecutive hike, "will likely be the last one in this cycle."

"The Fed is concerned that tighter credit conditions will weigh on economic activity and hiring, while helping maintain disinflation trend," Moya said. "Credit tightening is about to cripple the economy and it appears that as long as we don't get a perfect storm of hotter-than-expected labor and inflation data, the Fed will keep rates on hold for at the very least till the end of the year."

The SPDR S&P Regional Banking ETF (KRE) declined more than 1%. The regional banking ETF fell more than 6% during Tuesday's trading session. Shares of PacWest shed nearly 2% after losing about 28% the prior day. Western Alliance shares were down 4.4%.

Lea la cobertura del mercado de hoy en español aquí.

Stocks close down Wednesday

U.S. stocks ended Wednesday's trading session in the red.

The Dow Jones Industrial Average fell 270.42 points, or 0.8%. The S&P 500 and Nasdaq Composite declined 0.7% and 0.64%, respectively.

— Hakyung Kim

Regional bank stocks fall after Powell's remarks

Regional bank stocks turned south again in the last 30 minutes as investors react to Fed Chair Jerome Powell's press conference.

Shares of PacWest fell more than 7%, extending the bank's heavy losses for the week. Zions Bancorp. slid 4.6%, and Western Alliance dropped 3.1%.

The SPDR S&P Regional Bank ETF (KRE) was down 0.6%.

— Jesse Pound

BTIG's Boltansky say odds of breaching debt ceiling remain low, but a 'new phase of this melodrama' is unfolding

While the odds of the US. breaching the debt ceiling remain low, the Treasury Department's new X-date deadline could have some major implications for the current drama unfolding, according to BTIG's Isaac Boltansky.

The comments come after U.S. Treasury Secretary Janet Yellen said earlier in the week that the U.S. could fail to meet its debt obligations by June 1 and much sooner than expected.

According to Boltansky, the date creates a "degree of urgency into what has been a surprisingly stale state of play in Washington" and ups the odds of a "short-term punt of the debt ceiling deadline to align" with the cut off for federal spending.

"We continue to believe the likelihood of breaching the debt ceiling remains low, but we are entering a new phase of this melodrama that will lead to an appreciable ramp in political posturing and crisis choreography before a deal can be reached," Boltansky said.

Minting a $1 trillion coin to pay off debts, could, however, rattle debt markets and create a scenario where Congress may prefer advancing a "legislative solution than watch the economic fallout," he added.

"It behooves the White House to keep novel administrative solutions as part of the policy discussion, but we continue to believe the odds of these options being deployed is low given the downstream market and economic implications," he wrote.

— Samantha Subin

Buy the dip in Starbucks, says Wells Fargo

While shares of Starbucks took a hit after the coffee chain giant reported earnings, Wells Fargo sees a buying opportunity.

Share dropped nearly 9% on Wednesday following Starbucks' earnings report after the bell Tuesday. The company's earnings and revenue for its fiscal second quarter beat expectations. However, it reaffirmed its full fiscal-year outlook.

"While China comps of +3% didn't quite match bullish expectations, Q1 results were impressive via accelerating comps, elevated flow through & a DD% EPS beat. While the 2H outlook features some head scratchers, we see conservatism and buying weakness," analyst Zachary Fadem wrote in a note to Tuesday. .

Stock Chart IconStock chart icon
hide content
Starbucks' one-day performance

— Michelle Fox

Dollar hits session lows

The dollar index, which tracks the greenback's performance against six other global currencies, fell more than 0.7% to a session low of 101.07 on Wednesday. That was its lowest level since April 16.

The move comes as Fed Chair Jerome Powell answers questions following the central bank's latest policy decision.

Stock Chart IconStock chart icon
hide content
DXY on Wednesday

— Fred Imbert, Gina Francolla

Regional bank stocks move higher after Fed statement

Regional bank stocks were trending higher after the Federal Reserve appeared to soften its language about future rate hikes in its latest policy statement.

Shares of PacWest Bancorp. rose about 4%, while Western Alliance gained 2.2%. The SPDR S&P Regional Banking ETF (KRE) was up about 1.7%.

— Jesse Pound

Fed hikes rates

The Fed raised rates for a 10th time in this tightening cycle, as was widely expected. The central bank also signaled a pause to the campaign could come.

"In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed said in a statement.

The Fed also removed a sentence from the previous announcement, which said, "The Committee anticipates that some additional policy firming may be appropriate" for the Fed to achieve its 2% inflation goal.

For more, check out CNBC's Fed live blog.

— Fred Imbert, Jeff Cox

Icahn Enterprises extends losses after Hindenburg's short-selling report

Shares of Icahn Enterprises extended their losses Wednesday, falling another 20% after notable short seller Hindenburg Research took a short position against Carl Icahn's conglomerate.

Hindenburg on Tuesday released a report on Icahn Enterprises, alleging "inflated" asset valuations, among other reasons, for what it says is an unusually high net asset value premium in shares of the publicly traded holding company.

The stock closed down 20% on Tuesday, and it has fallen more than 36% this week alone.

— Yun Li

Energy stocks lag in S&P 500

Energy stocks lagged on the S&P 500 in Tuesday's session.

The sector was the worst performing of the broad index's 11 total with 0.8% down. Consumer staples was the only other sector in the red, shedding a relatively modest 0.1%. By comparison, the index was up 0.3%.

Marathon Petroleum and Diamondback Energy led the sector down with respective drops of more than 4% and 2%. Phillips 66 and ONEOK were both among energy stocks in the index able to buck the downturn, with each up more than 1%.

— Alex Harring

A Fed pause could boost homebuilder stocks, ETFs

If the Federal Reserve hints at a pause in Wednesday's policy statement, the red-hot homebuilding sector could see another boost.

Homebuilder ETFs have solidly outperformed in 2023, and executives for some of the country's biggest builders said during recent earnings calls that stable interest rates could boost consumer confidence.

Stock Chart IconStock chart icon
hide content
Homebuilder ETFs are outperforming in 2023.

Read more about the top homebuilder ETFs on CNBC Pro.

— Jesse Pound

Coinbase shares fall following Mizuho cuts price target

Shares of Coinbase were fell more than 4% on Wednesday after Mizuho reiterated its underperform rating on the crypto stock and lowered its price target to $27 from $30.

Mizuho's Dan Dolev pointed to "muted trading volumes and a sharp decline in USDC market cap" as factors that "are likely" to weigh on transaction revenue and interest income.

"Despite COIN's recent efforts to boost sentiment (e.g. recent launch of an international exchange for non-US users), fundamentals remain weak," Dolev said. "Average daily trading volumes are $1.16bn in 2Q-to-date, -27% below both March and overall 1Q levels."

— Tanaya Macheel

Today's Fed message — 'it's all in the packaging,'

LPL Financial's chief global strategist Quincy Krosby says that with markets largely anticipating a 25 basis point rate hike during after the Federal Reserve's meeting today, what Chair Jerome Powell says in his statement and press conference will drive the markets' expectations.

"While it's nearly fully anticipated that the Fed will pause in its rate hike campaign following today's meeting, it will be the way the statement  is packaged that will underpin and shape market expectations," said Krosby.

 "To message that this is a firm 'one and done' would lead to more questions than answers and, at its core, question Jerome Powell's resolve in restoring price stability," Krosby added.

— Hakyung Kim

'Tremendous amount of tightening already baked into the cake,' says Horizon Investments

Horizon Investments' CIO Scott Ladner says the economy is already seeing the Federal Reserve's rate hikes take significant effect.

"There is a tremendous amount of tightening already baked into the cake," said Ladner, adding that the instability in the banking sector has also aided the central bank in its efforts to cool the economy," said Ladner.

Ladner believes the Fed can move slower on its monetary policy path after today's expected rate hike.

"We think they could they could basically compromise a little bit. ... And acknowledge the credit tightening that's already in the system. And let it play out a little bit before increasing [and] basically turning the wrench more."

— Hakyung Kim

History shows markets could rally if Wednesday's Federal Reserve rate hike is the last

Markets could climb higher if the Federal Reserve decides to pause future rate hikes on Wednesday.

That's according to a CNBC Pro examination of the past five Fed decisions to stop increasing rates. The benchmark S&P 500 index has typically gained in the months after central bank decisions to pause rate hikes, with the exception of after the burst of the 2000 dotcom bubble.

In fact, the S&P 500 gained more than 27% after the Fed stopped cutting rates in December of 2018.

Read the full story here.

— Brian Evans

A.I. excitement's contributed heavily to market's 2023 gain

Excitement around artificial intelligence has made a hefty contribution to this year's market gains.

Bespoke Investment Group data from earlier this week shows that four major stocks contributed 60% of the uptick in the benchmark index — Apple, Meta Platforms, Microsoft and Nvidia.

Individually, Meta shares have doubled, while Nvidia's up 90%.

Read more on how AI's driven this year's market gain and what could be ahead for the technology sector here.

— Samantha Subin

Janney: 'Bank investors may have little to no confidence' in Fed

Bank investors need to hear that U.S. bank deposits are protected from Fed Chair Jerome Powell and want him to support unlimited deposit insurance, according to Janney's Christopher Marinac.

"Bank investors may have little to no confidence in the US Fed at the present moment," he said in a note to clients Wednesday.

Marinac said Tuesday's bank stock sell off reflected an "investor temper tantrum" toward the central bank ahead of its interest rate hike announcement expected Wednesday afternoon. He said the volume shows "pure frustration with the trajectory of interest rates by investors," adding that clarity on when interest rate hikes will end would be "extremely welcomed."

— Alex Harring

Regional banks index hits lowest point since 2020

The S&P 500 Regional Bank Sub-Index hit its lowest point in more than three years on Tuesday as the latest bank failure reignited investor fears.

Regional banks have been closely followed since the closure of Silicon Valley Bank in March. But the S&P 500 sub-index took another leg down in Tuesday's session to a low not seen since April 2020 as investors continued assessing the impacts of the auction for First Republic Bank that JPMorgan Chase won this week.

The sub-index closed Tuesday at $67.93. It last closed lower on April 16, 2020, when it finished at $67.59.

— Alex Harring

Estee Lauder drops on forecast cut, earnings miss

Estee Lauder shares tumbled more than 21% Wednesday after the makeup company cut its full-year sales guidance, citing a slower-than- expected recovery in Asia.

The company reported lower-than-expected earnings of 47 cents a share, below the EPS of 51 cents, according to FactSet.

For the full year, Estee Lauder now expects EPS ex-items of $3.29 to $3.39. it previously guided for EPS of $4.87 to $5.02.

Stock Chart IconStock chart icon
hide content
Estee Lauder falls on earnings miss, guidance cut

— Samantha Subin

Michael Milken says recent crisis is the same mistake banks have been making for decades

Famed investor Michael Milken said the current banking crisis stemmed from a classic asset-liability mismatch that has played out miserably time and again in history.

"You shouldn't have borrowed short and lent long... Finance 101," Milken said on CNBC's "Last Call." "How many times, how many decades are we going to learn this lesson of borrowing overnight and lending long? Whether it was the 1970s, the 1980s and 90s."

The founder of the Milken Institute believes that there will be a decrease in the percentage of loans that are owned by the banking system in the aftermath of the crisis.

— Yun Li

ISM services PMI comes in roughly in line

The ISM services PMI came in at 51.9 for the month of April, roughly matching a Dow Jones estimate.

"There has been a slight uptick in the rate of growth for the services sector, due mostly to the increase in new orders and ongoing improvements in both capacity and supply logistics," Anthony Nieves, chair of the Institute for Supply Management, said in a statement.

"The majority of respondents are mostly positive about business conditions; however, some respondents are wary of potential headwinds associated with inflation and an economic slowdown," Nieves said.

— Fred Imbert

Energy stocks achieve grim milestone

Energy stocks are in a tough spot.

The Energy Select Sector SPDR Fund (XLE), which tracks the S&P 500 energy sector, had its 50-day moving average on Wednesday dip below its 200-day for the first time since December 2020.

Such events can be seen as a warning sign for investors, as it indicates an asset is lagging its longer-term trend.

Devon Energy, Diamondback Energy and Marathon Oil pushed the XLE lower by more than 1%.

— Fred Imbert, Gina Francolla

CVS Health shares hit 52-week low as merger costs weigh on forecast

CVS Health first-quarter earnings beat across the board, with strong pharmacy results even as Covid vaccine and testing volume falls. However, shares fell about 4%, hitting a 52-week low intraday, after the company cut its 2023 forecast.

The lower guidance came as the company closed its Oak Street Health deal sooner than expected. The early close means integration costs will hit CVS sooner than anticipated. Although it's weighing on the bottom line now, CVS expects the deal to boost its primary-care operations.

CVS expects to earn between $8.50 and $8.70 per share, excluding items this year. Previously, it projected it would earn between $8.70 and $8.90 per share.

—Bertha Coombs, Christina Cheddar Berk

Stocks open slightly up Wednesday morning

U.S. stocks opened slightly higher on Wednesday.

The Dow Jones Industrial Average rose 38 points, or 0.11%. Meanwhile, the S&P 500 and the Nasdaq Composite gained 0.15% and 0.16%, respectively.

— Hakyung Kim

U.S. listed shares of Pearson add more than 9% in premarket

U.S.-listed shares of Pearson added 9% before the bell after Bank of America said it got unnecessary beat down in sympathy with Chegg's selloff on Tuesday.

Chegg shares fell more than 40% Tuesday after the company said ChatGPT was killing its business, bringing down Pearson in turn. But Bank of America analyst David Amira said Pearson should not be impacted the same as Chegg by artificial intelligence, given Pearson's focus on textbooks rather than homework help.

"The read-across to Pearson feels overly harsh," he said in a note to clients Wednesday, in which he double-upgraded the stock.

CNBC Pro subscribers can read the full story here.

— Alex Harring

Markets have fallen more after Jerome Powell's Fed Days than for any other Chair

Current Federal Reserve Chair Jerome Powell has so far seen the largest drop in markets of any Fed Chair following the central bank's Fed Day announcements until that day's close, according to Bespoke Investment Group.

Looking at the S&P 500 intraday composite of Fed Days for the last four Fed Chairs, Bespoke found that the broad market index has on average declined 0.16% from when Powell releases his statement at 2 p.m. until the market close. Shares fell 0.07% after former Chair Alan Greenspan's statement releases. Meanwhile, markets rose 0.13% and 0.08% under former Chairs Ben Bernanke and Janet Yellen, respectively.

— Hakyung Kim

Wolfe double upgrades Prosperity Bancshares

Wolfe Research double-upgraded Prosperity Bancshares to outperform from underperform, saying the bank has "relative safety on high ground" amid sector turmoil that was initially ignited by the closure of Silicon Valley Bank in March and reignited by the auction won by JPMorgan for First Republic Bank this week.

"We view PB as a flight-to-quality name that provides investors with an attractive place to hide amid the current market tumult," the firm in a Wednesday note to clients.

Shares were up 0.7% Wednesday during premarket trading.

CNBC Pro subscribers can read more about the double upgrade here.

Stock Chart IconStock chart icon
hide content
Prosperity Bancshares stock

— Hakyung Kim, Alex Harring

Private job gains in April easily top expectations

Private sector payroll growth in April was much stronger than expected, with companies adding 296,000 jobs, ADP reported Wednesday.

The gain was well above both the 142,000 posted in March and the 133,000 Dow Jones estimate. Wages grew at a 6.7% annual pace, down from recent months, the firm added.

Job gains were biggest in leisure and hospitality and education and health services, while finance and manufacturing both reported losses.

—Jeff Cox

Wall Street analysts at odds over Advanced Micro Devices stock

Advanced Micro Devices reported and earnings and revenue beat for the first quarter. AMD said to expect about $5.3 billion in sales for the current quarter, while analysts expected $5.48 billion. But CEO Lisa Su said the company should be able to grow in the second half of the year, specifically noting help from improvements in the PC and server markets.

AMD's report comes as the PC industry is in a deep slump, with shipments dropping 30% in the first quarter, according to IDC. Wall Street analysts are mixed as to whether the chipmaker is on a path to a rebound, or if the stock has yet to reach their bottom.

Shares fell more than 7.5% in the premarket on the back of the report.

CNBC Pro subscribers can read the full story here.

Stock Chart IconStock chart icon
hide content
Advanced Micro Devices shares

— Hakyung Kim

Regional banks under pressure again

Regional bank stocks were poised to open lower again on Wednesday as the fallout from the failure of First Republic continues to ripple through the market.

Shares of PacWest, which fell nearly 28% on Tuesday, was down more than 3% in premarket trading. Shares of Western Alliance were also down more than 3%.

The SPDR S&P Regional Banking ETF (KRE) was down 0.4%.

— Jesse Pound

WTI Crude prices fall to lowest levels since March

WTI Crude (JUN) prices fell 3.07%, hitting a low of $69.46 as of 7:28 a.m. ET Wednesday. This marked WTI Crude's lowest price level since Mar. 27, when it traded as low as $69.13.

WTI Crude is down almost 9.5% week to date, on pace for its worst week since Mar. 17, when it lost almost 13%.

The Energy Select Sector SPDR Fund (XLE) is down 6.6% week to date, putting it on pace for its worst week since Mar. 17, when it lost 6.85%. Energy groups Halliburton and Exxon Mobil have lost 10.4% and 8.4% this week, respectively.

Stock Chart IconStock chart icon
hide content
WTI Crude and energy prices have tumbled this week

— Hakyung Kim, Gina Francolla

Stocks are in 'late-cycle limbo,' Barclays says

The market is in an interesting spot heading into the Fed announcement, Barclays strategist Emmanuel Cau wrote.

"Equities are in late-cycle limbo, torn b/w peak rates hope and recession fear," he wrote Wednesday. "The path of least resistance may be higher if the Fed leans towards a pause, yet the growth outlook does not get better. Having cut beta last two months, a more defensive, but also diversified, portfolio makes sense, as perceived safety is pricey."

— Fred Imbert, Michael Bloom

Eli Lilly shares pop on Alzheimer's treatment trial data

Shares of Eli Lilly rose more than 3% after the pharmaceutical company released clinical trial data showing its donanemab drug slowed the progression of Alzheimer's disease.

Trial results showed patients who took the drug were 39% less likely to see the disease progress to the next stage.

Stock Chart IconStock chart icon
hide content
LLY jumps

— Spencer Kimball, Fred Imbert

What to expect from the Fed announcement

It's almost a given that the Federal Reserve will raise rates by 25 basis points.

The tough part for Wall Street will be figuring out what comes next. Does the Fed signal that it's done hiking, or will it leave open the option of tightening even more if it judges that more needs to be done to fight inflation?

"What's most important is how they convey the potential for a pause going forward," said Collin Martin, fixed income strategist at Charles Schwab. "How do they do that while also probably leaving the door open a little bit? That will be a balancing act between suggesting a pause is in the cards but still is dependent on incoming data should inflation turn higher going forward."

— Jeff Cox

ING expects weakness in exports for Hong Kong market, revises growth forecasts downward

Hong Kong and U.S. economic cycles are no longer in sync, economist says
VIDEO2:5902:59
Hong Kong and U.S. economic cycles are no longer in sync, economist says

ING's chief economist for Greater China Iris Pang lowered her growth forecasts for Hong Kong, a day after the city reported gross domestic product grew 2.7% in the first quarter.

Speaking to CNBC's "Squawk Box Asia," Pang said she sees a recession in the U.S. "maybe around the fourth quarter" and expects the Fed to cut rates by 100 basis points by the end of 2023.

As a result, prospects for Hong Kong and mainland China's exports are "not going to be bright" in the second half of the year.

Pang cut her outlook for Hong Kong in the second half, bringing her full-year GDP growth forecast to 2.9%.

— Lim Hui Jie

Rate hike in Australia due to 'uncomfortably persistent' services inflation: Lowe

Australia's central bank governor Philip Lowe said "uncomfortably persistent" services inflation was one of the main reasons the Reserve Bank of Australia hiked its cash rate by 25 basis points in its Tuesday meeting to 3.85%.

In a Tuesday evening speech, Lowe explained that the inflation peak in Australia has passed, but added it will take some time before inflation comes back to the RBA's target range of 2-3%.

He acknowledged that inflation for goods is slowing, but inflation for services and energy is likely to remains elevated, adding that he also sees "worryingly persistent" services inflation overseas.

"It is possible that circumstances might be different here in Australia, but the experience abroad points to an upside risk, especially given the high degree of commonality across countries in inflation dynamics recently," Lowe said.

— Lim Hui Jie

Bank of Korea governor says ‘premature’ to talk about rate cuts

Bank of Korea Governor Rhee Chang-yong says it's too early to start talking about rate cuts.

The South Korean central bank was one of the first in Asia to pause its tightening cycle, spurring market speculation that it could soon begin cutting rates. But Rhee told CNBC's Chery Kang at the Asian Development Bank's annual meeting Incheon that those expectations are "premature."

"We made it clear, given that our core inflation is still well above our target, and we have good news, that our inflation is going below 4% in April, so it's going down," Rhee said Wednesday.

"But still, I think that given that it's above the target, we have to wait and see, it would be a little bit premature to talk about [a] pivot at this moment."

– Jihye Lee

Stocks making the biggest moves after hours

Check out the companies making headlines after hours:

  • Ford Motor — Ford topped analysts' expectations on the top and bottom lines, according to Refinitiv. However, the firm reiterated its prior full-year guidance of adjusted earnings between $9 billion and $11 billion, as well as about $6 billion in adjusted free cash flow. The auto stock declined about 2.3% in extended trading. 
  • Starbucks — Starbucks shares fell 2% in after-hours trading. The coffee chain topped analysts' expectations on the top and bottom lines, reporting adjusted earnings of 74 cents per share, greater than the 65 cent per-share estimate, according to Refinitiv. It reported $8.72 billion in revenue, topping the $8.4 billion forecast. 
  • Clorox — Clorox gained 1% after topping analysts' expectations on the top and bottom lines. The consumer products firm reported fiscal third-quarter adjusted earnings of $1.51 per share on revenue of $1.91 billion. Analysts polled by Refinitiv were expecting earnings of $1.22 per share on revenue of $1.82 billion.

Read the full list here.

— Sarah Min

A mild recession won't trigger a quick Federal Reserve response, BofA says

Maybe Monday's stock market slide shows investors are finally tempering their optimism that the Federal Reserve will cut interest rates later this year to counterbalance an economic slowdown.

"[T]he markets may be too optimistic about how easy it is going to be to bring inflation back to target and will be surprised when the Fed does not cut rates in the face of a mild recession, Bank of America global economist Ethan Harris wrote in a note to clients before markets opened Monday.

Simply put, investors have bid up stocks since mid-March on a belief that the Fed will pivot policy, and cut rates by half a percentage point in reaction a shallow recession, BofA said.

Unfortunately, the bank says such hopes will be dashed. "We see four risks this summer: an ugly debt ceiling battle, a significant tightening of bank credit, a geo-political event and disappointingly hawkish central banks. The plan for many central banks, in our view, is to raise rates into modestly restrictive territory and then hold them there to finish the job of bringing inflation back to target. Hence a mild recession in the US—and flat growth in other major economies—will not trigger an immediate policy response," Harris wrote.

— Scott Schnipper

KeyCorp, Zions shares touch fresh lows as regional bank stocks suffer

Regional bank stocks sold off Tuesday as investors grew anxious over contagion risk from the sector – and a few names fell to lows not seen in years.

Zions Bancorporation traded at lows not seen since February 2016; shares ended Tuesday down 10.8%.

KeyCorp, which shed 9.4%, tumbled to lows not seen since May 2020.

U.S. Bancorp also slipped to lows last seen in May 2020. Shares closed lower by 7%.

Other banking stocks that touched notable lows include Citizens Financial Group and Northern Trust. Both slipped to lows not seen since 2020.

-Darla Mercado, Chris Hayes

Stock futures open lower

U.S. stock futures fell slightly on Tuesday night as investors looked ahead to the Federal Reserve's latest policy decision.

Dow Jones Industrial Average futures fell by 27 points, or 0.08%. S&P 500 and Nasdaq 100 futures dipped 0.09% and 0.18%, respectively.

— Sarah Min