Tuesday morning, the stock market in New York was going up and down but staying mostly the same. The S&P 500 dropped just a little bit (0.1%). The Dow Jones Industrial Average lost 122 points (0.4%). Also, the Nasdaq Composite went 0.1% down from where it began Tuesday morning. This happened after some big companies released their earnings results and the world’s second-largest economy reported news that was better than expected.

Lockheed Martin was one of the companies that helped push the market up. It went up 3.1% after saying it made more profit than people predicted. Most companies that have reported their earnings so far this season have been doing better than expected.

Before this reporting season, lots of people on Wall Street were worried that prices would stay very high and interest rates (the amount you pay to borrow money) would get even higher. Analysts thought that companies in the S&P 500 would have the worst fall in earnings since the pandemic started last year.

Some companies had bad luck and struggled because they didn’t do as well as people were expecting. Goldman Sachs went down 1.7% because the money it made was lower than what analysts thought would happen, though it made more money than people had guessed. Goldman Sachs is an important part of the Dow Jones Industrial Average, which caused the Dow to not be as good compared to other parts of the market.

Bank of America made money on the stock market last quarter, and beat expectations. Most health care stocks were not doing as well and Johnson & Johnson shared bad news even though they usually report a good profit.

This week, reports from lots of famous companies like AT&T, Tesla and Procter & Gamble will be coming out. People will be paying a lot of attention to the smaller regional banks like KeyCorp. and Zions Bancorp., which saw their stock prices drop last month after two really big US bank failures happened.

People were concerned that people might take their money out of the banks all at once, causing them to lose money like Silicon Valley Bank and Signature Bank had. Most of the worry has been focused on smaller banks, not big famous ones like JPMorgan Chase and Bank of America.

Banks have been doing really well lately. They are so big that they likely attracted a lot of people’s money during this trying time. This has caused some relief in the markets. People at Barclays have said that stock investors were more relaxed since bank earnings looked great.

The banking industry is having trouble and this could stop banks from lending money. The government is trying to prevent inflation, which is when prices get too expensive. To do this, they’re making interest rates (what you have to spend to borrow money) higher, but this puts a lot of stress on the economy and might cause it to slow down a lot, even leading to a recession–a bad time in the economy where people don’t have much work or money.

Inflation is still high, and it’s likely that the Federal Reserve will increase interest rates at their next meeting in May. Treasury yields, which affects the cost of mortgage loans and other kinds of loans, rose on Tuesday but then started to go back down. The 10-year yield dropped from 3.61% to 3.55%, while the two-year yield fell from 4.21% to 4.17%.

Today in different markets around the world, stocks were changing differently. In Asia, some stocks went up, others went down but in Europe most of the stock prices had moved up.

In China, their economy was doing a lot better than expected between January to March this year because people started going out and shopping again after coronavirus restrictions were lifted. People are hoping that with such great growth from the second largest economy in the world, the global economy will benefit too. But some experts still remained cautious and don’t want to get too hopeful.

Tan Boon Heng from Mizuho Bank said that the recent events may not cause growth to go back up above 5% or give private companies the confidence they need to start growing again.

Experts believe that many trade patterns could change since there are a lot of political problems happening around the world, like the war in Ukraine, which can disrupt supply lines and also cause prices for consumers to go up and forced central banks to take different steps.

The world might be changing from a time of calmness to one of constantly fluctuating markets. This could lead to slower economic growth, higher prices, and more unpredictable trade agreements. Instead of supplies being able to change quickly in response to varying needs, it’s possible we’ll experience sudden shortages or lack in supply.