Markets fell Tuesday as investors digested the first of several expected Congressional hearings on the banking tumult.
The Senate Banking Committee on Tuesday probed key federal regulators on the events that led to the collapse of Silicon Valley Bank and Signature Bank. Regulators revealed that customers of SVB tried to withdraw $100 billion from the bank the day it failed, and that Federal Reserve supervisors gave the bank low ratings on its strength and stability before its collapse.
Regional bank stocks slipped, cutting short their Monday rally. The SPDR S&P Regional Banking ETF, which tracks a number of small and midsize bank stocks, fell about 0.4%.
But shares of First Citizens Bank, which bought SVB's remaining assets, deposits and loans, rose 2.3%. Shares of New York Community Bank, whose subsidiary Flagstar Bank bought Signature Bank, climbed 1.8%.
Shares of AMC Entertainment, the world's largest movie theater chain — and a meme stock — surged 13.2% and saw a brief trading halt on reports that Amazon is looking to purchase the ailing company.
Investors also parsed through fresh data on the state of the economy. Confidence in the US economy grew in March despite the turmoil in the financial sector, according to the Conference Board. A survey from the Federal Reserve Bank of New York revealed that Americans expect home prices to continue swelling over the next year.
The Dow fell 37 points, or 0.1%.
The S&P 500 shed about 0.2%.
The Nasdaq Composite lost about 0.5%.