By Yasin Ebrahim

Investing.com – The S&P 500 fell Tuesday, as financials fell after quarterly earnings from major Wall Street banks failed to impress investors.

They fell 0.6% while the dropped 1.1% or 394 points. The Nasdaq also lost 0.3%, trading at 14,765. As a support level traders are monitoring the 14,725 level on the as the 100-day moving mean.

Three major Wall Street banks, including Citigroup and Wells Fargo (NYSE:), reported higher-than-expected results. However, JPMorgan dropped 6% because of its warnings about rising costs.

JPMorgan stated that it expects expenses to increase by 8% in the coming year. This raises concerns over whether JPMorgan will be able meet its 17% goal for tangible equity return.

Citigroup The shares of (NYSE:) reported a 26% drop in profits. This was accompanied by a wider than expected decline in trading revenues and fixed-income revenue revenue dropping 20% during the fourth quarter. Its shares dropped 2%.

Wells Fargo The stock index (NYSE:) rose by more than 2 percent after the bank’s profit increased 86%. It also provided a positive outlook for loan growth in 2022.

The technology sector was flat and outperformed the wider market. A rise in semiconductor stocks and big tech helped to support the wider sector.

Apple (NASDAQ: ) fell after Apple Bloomberg reported that Apple may delay the launch of its virtual reality headsets.

Also, casino stocks were in focus Las Vegas Sands Wynn Resorts and (NYSE:), soared following Macau’s gambling hub in Asia. They announced new gambling operations in the area, easing the uncertainty surrounding the renewal of gambling licenses.

The Macau legislature has yet to approve the measures that would restrict the number and duration of gaming licences to six from 20, as well as limit their availability to gaming companies for a maximum of 10 years.

Boston Beer (NYSE) has cut its outlook on earnings for the year due to increasing costs and supply concerns that had impacted on growth. Shares fell over 11%.

After December’s spending decline of 1.9%, signs of wobble among consumers also affected sentiment in stocks.

However, inflation could be helped by the weakening consumer spending.

”On the upside, the current retail weakness will accelerate inventory rebuilding, which should help take the pressure off inflation. It doesn’t necessarily soften the case for a March hike, but it reduces the tail risk of the Fed hiking more than 4 times this year,” Jefferies said in a note.