Stock market news today: Investors await Fed rate hike amid bank crisis

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US stocks fall as investors prepare for another interest rate hike from the Fed

US stocks fell about 1% on Tuesday as traders prepared for another 25-basis-point interest rate hike from the Federal Reserve at its May FOMC meeting on Wednesday.

Perhaps more importantly, investors will be looking to Fed Chairman Jerome Powell's press conference for any clues that a pause in future rate hikes is imminent, especially after First Republic Bank became the third bank to collapse in recent months. with the S&P Regional Banking ETF falling more than 6% as investors grow concerned that another lender could collapse after the Fed's aggressive tightening cycle created sizable, unrealized losses on bank bond holdings.set to report quarterly results after the market close on Thursday.

So far, earnings have held up better than analyst estimates. With 57% of S&P 500 companies having already reported, 80% are beating profit estimates by a median of 8% while 74% are beating revenue estimates by a median of 3%, according to Fundstrat.

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