US stocks slip as yields creep higher on easing concerns about banking system stress

• US stocks ebbed lower on Tuesday after the S&P 500 logged three straight wins.
• Treasury yields were rising, with the two-year yield touching 4%.

US stocks slipped Tuesday as Treasury yields edge higher on developments that, for now, have calmed turmoil in the banking sector.

The S&P 500 was down after notching three consecutive wins. Investors were sifting through some earnings reports, including from Dow component Walgreens Boots Alliance, which was up after the retail pharmacy's fiscal second-quarter earnings and sales beat Wall Street's targets even as demand for COVID tests softened.

Banking fears eased on Monday as First Citizens reached a deal to acquire $72 billion of assets of imploded Silicon Valley Bank for a $16.5 billion discount. Also soothing some concern was a Bloomberg report over the weekend that the government may offer more support to banks partially to help First Republic further stabilize.

The turmoil in the banking industry has kicked up fears that a credit crunch is forming for American consumers and businesses. But as those fears appeared to subside a bit, Treasury yields rose on Tuesday. The two-year Treasury yield pushed above 4% for the first time in nearly a week.

Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:

• S&P 500: 3,968.99, down 0.21%
• Dow Jones Industrial Average: 32,400.66, down 0.11% (35.16 points)
• Nasdaq Composite: 11,738.22, down 0.26%

"Investors can't seem to make up their minds as to where stocks should go from here, how the bank crisis will play out, and whether the FOMC's next move will be a rate hike, a rate pause, or a rate cut," Bespoke Investment Group wrote in a Tuesday note.

"How often is it that credible arguments can be made for any of those three decisions? With that uncertainty, is it any surprise that the S&P 500 is sandwiched right between its 50- and 200-day moving averages?," it wrote.

Here's what else is happening today:

• "Bond King" Jeffrey Gundlach warned a US recession will hit in a few months - and outlined what stock investors should do.
• Why the struggles of mid-sized US banks could be bad news for the Main Street economy.
• Binance boss CZ showed what he thinks of the CFTC's trading violations lawsuit with an enigmatic tweet.
• People are running to money-market funds - here are the 8 currently offering the highest yields.

In commodities, bonds, and crypto:

• West Texas Intermediate crude picked up 0.2% at $72.97 per barrel. Brent crude, the international benchmark, rose 0.3% to $78.35.
• Gold moved higher by 0.3% to $1,960.80 per ounce.
• The 10-year Treasury yield rose 1 basis point to 3.54%.
• Bitcoin fell 0.6% to $26,878.12.