The US markets closed lower on Tuesday, with Dow posting triple-digit drop after IBM and United Technologies Corporation reported disappointing quarterly reports. IBM is the second highest-weighted component in the Dow index and United Technologies is the 10th. Meanwhile, the eight leading US banks will hold extra capital buffers totaling $200 billion under new Federal Reserve rules aimed at preventing a major financial collapse. The Fed announced final rules that will apply to eight major banks deemed to be globally systemically important. All but one of the banks, which include Citigroup, Goldman Sachs and Morgan Stanley, are already in compliance with the requirements. The exception is JPMorgan, which would have a current $12.5bn capital shortfall as a result of the rules. Nonetheless, overall trading activity remained relatively subdued amid another quiet day on the US economic front.
The Dow Jones Industrial Average lost 181.12 points or 1.00 percent to 17,919.29, the Nasdaq was down 10.74 points or 0.21 percent to 5,208.12 while the S&P 500 dropped 9.07 points or 0.43 percent to 2,119.21.
The Indian ADRs markets ended mixed on Tuesday, HDFC Bank was down 1.95%, Dr. Reddy’s Lab was down 1.31% and ICICI Bank was down 0.21%. On the other hand, Infosys was up 1.29% and Wipro was up 0.30%.