US stock market: Nasdaq outperforms as investors cheer Microsoft, Dow transports sink

The Nasdaq saw gains on Wednesday following strong earnings reports from Microsoft, but the S&P 500 and the Dow both experienced losses due to investor concern over a weakened US economy and the banking sector. Banking stocks were hit hard, as regional bank First Republic hit a record low causing watchdogs to consider devaluing its borrowing ability via the Fed. First-quarter earnings reported a 3.2% contraction in profit for S&P 500 companies. Despite this, the technology sector gained 1.7% and companies such as PacWest Bancorp were successful in beating first-quarter profit expectations.