US indices struggled to find direction on Tuesday, following a financial panic caused by Goldman Sachs.

US indices struggled to find direction on Tuesday, following a financial panic caused by Goldman Sachs after the Wall Street banking heavyweight released quarterly earnings that were below expectations.

The Nasdaq increased by 0.22%, the Dow Jones dropped by 0.93%, and the S&P 500 dropped by 0.06%.

After missing expectations in the fourth quarter due to growing costs, difficulty in its consumer banking division, and a 48% decline in investment banking revenues, Goldman Sachs Group's stock dropped more than 6%.

However, Morgan Stanley gained more than 6% after reporting fourth-quarter results that were better than anticipated, as record revenue in its wealth management unit offset weakness in investment banking amid weaker deal-making activity.

The broader market was also under pressure from communication services, with Verizon Communications, Warner Bros. Discovery, and Netflix among the media stocks that fell.

Prior to the release of Netflix's quarterly results on Thursday, UBS stated that it anticipated the streaming giant's subscriber growth for the fourth quarter to have tracked in line with management's forecast owing to a "strong content slate & seasonality."

Up from 2.4 million in the previous quarter but down from 8.3 million in Q4 of last year, Netflix is predicted to add approximately 4.5 million customers in the fourth quarter.

After JMP Securities downgraded Snap from market outperform to market perform, the social media business experienced a roughly 3% decline, citing weaker engagement and more competition.

After the computer giant announced the release of its new Macbook pro with its cutting-edge M2 CPU and a 22-hour battery, big tech was also generally lower, with Apple being the exception.

As a result of concerns that the company's guidance for the second quarter and the whole year may fall short of Wall Street expectations, Guggenheim lowered Microsoft's shares from neutral to sell.

Tesla increased 6% after Deutsche Bank "strongly" confirmed its buy rating on the business, citing the likelihood that the latest price cuts will support the electric vehicle manufacturer's volume growth.

(investing.com, reuters.com)