(Bloomberg) -- US equities declined and Treasuries rose as investors scrutinized a flood of earnings reports for clues on the outlook for corporate profits amid high interest rates and slowing economic growth.

Most Read from Bloomberg

• Fox Fired Its Biggest Star Tucker Carlson, Who Badmouthed Bosses

• Clarence Thomas’s Billionaire Friend Did Have Business Before the Supreme Court

• Tucker Carlson Leaves Fox News in Shakeup After Settlement

• BRICS Draws Membership Bids From 19 Nations Before Summit

• Javice Moved Millions From JPMorgan to Signature Months Before Collapse

The S&P 500 slipped 0.8% as consumer confidence dipped to lowest since July and US home-price gains cooled. Meanwhile, First Republic Bank plunged 27% after a worse-than-expected drop in deposits reignited concerns about a regional banking crisis.

In a busy week of corporate earnings, results so far have been mixed. General Motors Co. and PepsiCo Inc. beat expectations. United Parcel Service Inc. sank 9.3% after guidance disappointed, and UBS Group AG fell in New York after results fell short.

Tech majors Microsoft Corp. and Alphabet will report after the bell.

The yield on 10-year Treasuries continued its slide to 3.40%, decidedly dipping below the 200-day moving average. The market is now pricing the peak for US interest rates in June, and then a decline to end the year below 4.5%.

However, there is disagreement over the timing of rate cuts amid signs of a credit contraction, especially after results from First Republic and UBS.

“When was the last time a material contraction in credit did not result in a recession? (The answer: Never!),” Matt Maley, chief market strategist at Miller Tabak + Co, wrote in a morning note. “Investors need to spend a little more time using common sense … and adjust their portfolios to the reality that a soft landing in the economy this year is a pipe dream.”

Among other US companies reporting earnings Tuesday:

• Spotify Technology SA rose 5.3% after adding subscribers

• 3M Co. was little changed after announcing a restructuring push

• General Electric Co. was little changed after raising forecasts

• McDonald’s Corp. was little changed after beating sales estimates

• Danaher Corp. dropped 5.2% after lowering full-year guidance

A Bloomberg gauge of the dollar climbed. Government bonds across Europe rallied, with the German 10-year yield falling as much as eight basis points. And the Stoxx Europe 600 index dropped 0.6%.

Elsewhere, oil dipped, gold was little changed, iron ore extended a losing streak to a fifth day and Bitcoin slid for a third day.

Key events this week:

• Consumer confidence, Tuesday

• Australia CPI, Wednesday

• Sweden rate decision, Wednesday

• Eurozone economic, consumer confidence, Thursday

• US initial jobless claims, GDP, Thursday

• Bank of Japan meets on interest rates, Friday

• Euro-area GDP, Friday

• US personal income, Friday

Earnings highlights:

• Wednesday: Boeing, Meta, Hilton

• Thursday: Amazon, American Airlines, Intel, Mastercard, Southwest Airlines, Hershey, Honeywell, Barclays

Some of the main moves in markets:

Stocks

• The S&P 500 fell 0.8% as of 10:39 a.m. New York time

• The Nasdaq 100 fell 0.8%

• The Dow Jones Industrial Average fell 0.3%

• The Stoxx Europe 600 fell 0.6%

• The MSCI World index was little changed

Currencies

• The Bloomberg Dollar Spot Index rose 0.4%

• The euro fell 0.6% to $1.0983

• The British pound fell 0.7% to $1.2401

• The Japanese yen rose 0.3% to 133.79 per dollar

Cryptocurrencies

• Bitcoin fell 0.7% to $27,267.75

• Ether fell 1.7% to $1,809.41

Bonds

• The yield on 10-year Treasuries declined nine basis points to 3.40%

• Germany’s 10-year yield declined 14 basis points to 2.37%

• Britain’s 10-year yield declined 11 basis points to 3.67%

Commodities

• West Texas Intermediate crude fell 2.8% to $76.59 a barrel

• Gold futures fell 0.2% to $1,996.60 an ounce

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Tassia Sipahutar, Sujata Rao and Subrat Patnaik.

Most Read from Bloomberg Businessweek

• VPNs Are Going Mainstream, and So Are Their Trust Issues

• Fishing Boats Can’t Stop Running Over Undersea Internet Cables

• TikTok’s Algorithm Keeps Pushing Suicide to Vulnerable Kids

• How a Brazen Plot to Rig Oil Auctions Cost Venezuela Billions

• Sprite Is So Popular That Pepsi Launched a New Lemon-Lime War

©2023 Bloomberg L.P.