NEW YORK (CNNMoney.com) -- Stocks tumbled Tuesday, as investors braced for the results of the stress tests of the nation's banks and backpedaled after a two-month rally that boosted the S&P 500 by 36%.

The Dow Jones industrial average (INDU) lost 102 points, or 1.2%. The S&P 500 (SPX) index lost 12 points, or 1.3%. The Nasdaq composite (COMP) fell 43 points, or 2.4%.

After the close of trading, regulators said 10 of the 19 financial firms tested would need to raise a total of $75 billion in additional capital in order to withstand a potentially bigger downturn in the economy.

Leading the charge, Dow component Bank of America (BAC, Fortune 500) will need to raise nearly $34 billion, the federal officials said. Wells Fargo (WFC, Fortune 500) needs $13.7 billion, auto finance firm GMAC needs $11.5 billion, Citigroup (C, Fortune 500) needs $5 billion and Morgan Stanley needs $1.8 billion.

The other companies that need to raise money are regional lenders PNC Financial Services (PNC, Fortune 500), Regions Financial (RF, Fortune 500), SunTrust (STI, Fortune 500), Fifth Third (FITB, Fortune 500) and KeyCorp (KEY, Fortune 500).

JPMorgan Chase (JPM, Fortune 500), American Express (AXP, Fortune 500), Goldman Sachs (GS, Fortune 500) and Bank of New York Mellon (BK, Fortune 500) won't need to raise money, as earlier reports had indicated.

Other companies that don't need more cash: Capital One Financial (COF, Fortune 500), BB&T (BBT, Fortune 500), US Bancorp (USB, Fortune 500), State Street (STT, Fortune 500) and insurer MetLife (MET, Fortune 500).

Also announced after the close: the chairman of the Federal Reserve Bank of New York has resigned effective immediately. (Full story)

Trading gains: The recent advance has been fueled by the "fast money, day trader guys" and that will probably continue to boost stocks in the short run, said Joseph Saluzzi, co-head of equity trading at Themis Trading. But longer term, he said he doesn't think the rally has anything fundamental to stand on.

The explanation for the rally has been that the pace of the slowdown is easing. But Saluzzi said he doesn't believe there have really been a lot of signs of that, besides hints of housing bottoming in some of the hardest-hit areas.

"If you are in a basement, you can't dig much lower," he said. "I think people jumped the gun here."

After the close Thursday, AIG (AIG, Fortune 500) reported a quarterly loss of 97 cents per share versus a loss of $1.41 a year ago. Analysts thought AIG would report a loss of 6 cents per share. Shares fell nearly 7% in extended-hours trading.

The government's April employment report is due Friday morning. Employers are expected to have cut 600,000 jobs from their payrolls after cutting 663,000 the previous month. The unemployment rate, generated by a separate survey, is expected to have risen to 8.9% from 8.5% in March.

Economy: The number of Americans filing new claims for unemployment fell to 601,000 last week from a revised 635,000 the prior week, the Labor Department reported. The figure marked a 3-month low. Economists surveyed by Briefing.com expected 635,000 claims.

Continuing claims, the number of people receiving benefits for a week or more, rose to 6.35 million, the 14th straight record high.

Another government report showed first-quarter productivity rose 0.8% after falling 0.6% in the previous month. Economists thought it would rise 0.6%. Unit labor costs rose 3.3% in the first quarter after rising 5.7% in the previous quarter. Economists thought costs would rise 2.7%.

Consumer credit plunged $11.1 billion in March after rising $8.1 billion in the previous month. Economists expected it to fall $4 billion.

Speaking Thursday morning, Federal Reserve Chairman Ben Bernanke talked about ways to improve oversight of the banking system so as to avoid future crises. He said a "holistic approach" was necessary and that regulators have to track individual banks and the system as a whole to manage risk.

Retailers: No. 1 retailer Wal-Mart Stores (WMT, Fortune 500) posted better-than-expected sales in April, but the overall retail picture remained mixed as consumer spending was tepid in a recessionary period.

Wal-Mart said same-store sales rose 5% in April, versus forecasts for a rise of 2.8%. Same-store sales is a retail metric referring to sales at stores open a year or more.

Children's Place (PLCE) reported a 5% rise versus forecasts for no change. Shares rose 10.6%.

Teen clothing retailer Hot Topic (HOTT) reported sales rose 3.1% versus a forecast for a rise of 7%. Shares plunged 19.6%.

Company news: General Motors (GM, Fortune 500), struggling to stay afloat, said it lost $6 billion, or $9.66 per share, in the first quarter. However, analysts were expecting an even bigger loss.

Late Wednesday, Cisco Systems (CSCO, Fortune 500) reported quarterly sales and earnings that fell from a year ago but still topped estimates. The company also said it sees signs of a turnaround.

Dow telecoms AT&T (T, Fortune 500) and Verizon Communications (VZ, Fortune 500) both slipped after JPMorgan Chase downgraded them.

Chipmakers led the tech decliners, with Intel (INTC, Fortune 500), Advanced Micro Devices (AMD, Fortune 500) and Broadcom (BRCM, Fortune 500) all slumping.

Market breadth was negative. On the New York Stock Exchange, losers topped winners by almost two to one on volume of 1.97 billion shares. On the Nasdaq, decliners topped advancers two to one on volume of 3.27 billion shares.

Bonds: Treasury prices fell, raising the yield on the benchmark 10-year note to 3.32% from 3.14% Wednesday. Treasury prices and yields move in opposite directions.

Other markets: In global trading, Asian markets ended higher. European markets ended mixed.

In currency trading, the dollar fell versus the euro and gained against the yen.

U.S. light crude oil for June delivery rose 36 cents to settle at $56.71 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $4.50 to settle at $915.50 an ounce. 

NEW YORK (CNNMoney.com) -- Wall Street was set for a higher open Thursday after Treasury Secretary Tim Geithner offered reassuring comments about U.S. banks and the government reported a 3-month low in jobless claims.

Also, Wal-Mart reported same-store sales and General Motors posted a quarterly loss that was narrower than expectations.

At 8:47 a.m. ET, the Dow Jones industrial average, S&P 500 and Nasdaq-100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks surged Wednesday after early reports of the government's so-called stress tests suggested that the major banks are better capitalized than some had thought.

Geithner further reassured investors when he said in a TV interview Wednesday night that none of the 19 banks that were tested are at risk of insolvency.

David Jones, chief market strategist at IG Markets in London, said that "reassuring noises" from Geithner about the financial health of the banks helped to fuel investor sentiment.

Jobless claims: The Labor Department reported that initial jobless claims declined to 601,000 in the week ended May 2, a drop of 34,000 claims the prior week. The total was lower than the 635,000 claims expected by economists, according a consensus from Briefing.com, and were at the lowest level since Jan. 24.

But continuing claims increased by more than 50,000, to 6.35 million, the government said.

Dave Rovelli, managing director at Canaccord Adams in New York, said the government's number of jobless claims was significantly lower than expected, but the economy still has a way to go on the road to recovery.

"The initial claims number is trending in the right direction, but it's abnormally high, and continuing claims is still at a record," said Rovelli.

Retailers: A number of retailers were due to release their April same-store sales, and investors will use these results to gauge whether consumers are starting to spend again.

Wal-Mart said that same-store sales excluding gasoline jumped 5% in April, better than the expected increase of 2.8%. The world's biggest retailer credited the increase with Easter-related sales.

Corporate results: General Motors (GM, Fortune 500) reported a quarterly loss of $6 billion, which was better than expected. The automaker also said that sales fell 21% as it burned through $10 billion in the first quarter.

Another ailing behemoth, AIG (AIG, Fortune 500), releases its financial results after the closing bell.

Cisco (CSCO, Fortune 500) reported a drop in quarterly profit and sales late Wednesday, but the tech bellwether said it sees signs of a turnaround.

Banks: Regulators are due to reveal the results of their stress tests on 19 of the largest U.S. banks after the market close, but there has been a flurry of leaks in the run-up to the official release.

According to reports, Bank of America (BAC, Fortune 500) may need roughly $34 billion in capital while rivals Wells Fargo (WFC, Fortune 500) and Citigroup (C, Fortune 500) have also been frequently mentioned in recent days as facing capital shortfalls.

World markets: Asian stocks finished the session in positive territory, with Japan's Nikkei soaring nearly 5%. European markets were also higher after a rate cut from the European Central Bank.

Oil and money: The dollar was flat versus the euro, and higher against the yen and the British pound. Oil prices jumped $1.95 a barrel to $57.83. 

NEW YORK (CNNMoney.com) -- Stocks surged Wednesday, with financial issues leading the way, after reports about the government's "stress tests" suggested that the major banks are better capitalized than some had thought.

Also helping: jobs reports that suggested the pace of the slowdown is easing.

The Dow Jones industrial average (INDU) gained 102 points, or 1.2%. The S&P 500 (SPX) index climbed 16 points, or 1.7%. The Nasdaq composite (COMP) rose 5 points, or 0.3%.

The major stock gauges had seesawed through the early afternoon, but staged a rally through the close after reports about the stress tests surfaced.

Bank shares led the charge even on reports that major companies such as Bank of America and Citigroup will need to raise billions more to meet the requirements of the regulators conducting so-called stress tests.

But investors were perhaps relieved that the companies didn't need to raise even more, said Tom Hepner, financial adviser at Ruggie Wealth Management.

Stocks drifted lower Tuesday as investors retreated after a roughly 8-week advance that boosted the S&P 500 by 34%. The rally followed a rout that left the index at a more than 12-year low.

Since then, investors have been moving back into the market on indications that the economy is starting to find its footing. Wednesday's two job market reports continued that trend.

"There are indications that the rate of decline is slowing and that has made investors a bit more optimistic," Hepner said. "They're taking an almost ho-hum response to bad news."

After the close, Cisco Systems (CSCO, Fortune 500) reported quarterly sales and earnings that fell from a year ago but still topped estimates.

Reports are due before the start of trading Thursday on first-quarter productivity, first quarter unit labor costs and weekly jobless claims. A report on March consumer credit is due in the afternoon.

Stress tests: Investors were sorting through published reports on the health of the nation's banking system ahead of the government's official release of the stress test results Thursday.

The government is testing to see that the 19 biggest banks have enough money on hand to withstand a potential bigger downturn in the economy. More than half the banks may have to raise additional capital, according to reports this week.

Bank of America (BAC, Fortune 500) may need to raise an additional $34 billion in order to meet the regulators' standard. Wells Fargo (WFC, Fortune 500) may need around $15 billion, according to published reports Thursday. Dow component Citigroup (C, Fortune 500) may need at least another $10 billion.

JPMorgan Chase (JPM, Fortune 500), American Express (AXP, Fortune 500) and Bank of New York Mellon (BK, Fortune 500) won't need any additional capital, according to the reports.

All the bank stocks mentioned rallied, along with regional banks. Fifth Third Bancorp (FITB, Fortune 500) added 15.5% and was one of the Nasdaq's big gainers.

The KBW Bank (BKX) sector index gained 11.5%.

Employment: A pair of reports released before the open showed that the pace of unemployment is starting to slow.

Employers in the private sector pared 491,000 jobs from their payrolls in April, after cutting 708,000 jobs in March, according to payroll services firm ADP. Economists surveyed by Briefing.com expected a decline of 645,000.

The number of job cuts announced in April decreased for the third month in a row, according to outplacement firm Challenger, Gray & Christmas Inc. U.S. employers announced 132,590 cuts in April, the lowest number since October, but still 47% more than in the same month a year ago.

The reports raised bets that Friday's bigger non-farm payrolls report from the government will show a slower pace of job losses too. Employers are expected to have cut 620,000 jobs from their payrolls after cutting 663,000 in March. The unemployment rate, generated by a separate survey, is expected to have risen to 8.9% from 8.5% in March.

Autos: General Motors (GM, Fortune 500) shares slumped ahead of its quarterly report, due out Thursday. The troubled U.S. automaker, facing a potential bankruptcy filing, is expected to post a steep quarterly loss.

Last week rival Chrysler filed for bankruptcy, after failing to win enough concessions from its lenders.

Ford Motor (F, Fortune 500) - the only Detroit automaker that has not taken government loans - said its restructuring is on track and that it has enough money to fund its plan. The company also said it will spend $550 million to convert a plant that produced trucks and SUVs into a complex for making fuel-efficient and battery-powered cars.

Corporate news: Walt Disney (DIS, Fortune 500) issued quarterly results late Tuesday. The Dow component reported weaker earnings that topped estimates on weaker revenue that missed estimates. Shares jumped nearly 12% Wednesday.

A rally in oil prices gave a boost to big oil services stocks Exxon Mobil (XOM, Fortune 500), Chevron (CVX, Fortune 500), ConocoPhilips (COP, Fortune 500) and Schlumberger (SLB).

Among decliners, Wal-Mart Stores (WMT, Fortune 500) and other retailers declined. Thursday brings April sales from the nation's retailers.

Market breadth was positive. On the New York Stock Exchange, winners topped losers seven to three on volume of 1.88 billion shares. On the Nasdaq, advancers topped decliners five to four on volume of 3.02 billion shares.

Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.13% from 3.15% Tuesday. Treasury prices and yields move in opposite directions.

Borrowing costs continued to improve. The 3-month Libor rate fell to an all-time low of 0.97% from 0.99% Tuesday, according to Bloomberg.com. The overnight Libor held steady at 0.24%. Libor is a bank lending rate.

Other markets: In global trading, most Asian markets ended higher. Japanese markets have been closed all week for a holiday. European markets ended higher.

In currency trading, the dollar gained versus the euro and fell against the yen.

U.S. light crude oil for June delivery rose $2.50 to settle at $56.34 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $7.20 to settle at $911.50 an ounce. 

NEW YORK (CNNMoney.com) -- Wall Street was set for a weak open Wednesday amid anxiety about the results of stress tests on U.S. banks.

At 7:16 a.m. ET, Dow Jones industrial average, the Nasdaq-100 and S&P 500 futures were narrowly lower.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks slumped Tuesday as investors pulled back after the recent rally and geared up for the upcoming release of bank stress tests.

Todd Leone, head trader at Cowen & Co., said the reports of Bank of America's huge shortfall is largely to blame for the declines in futures.

"People were talking about a $10 billion gap," said Leone, noting that the real shortfall could be more than triple that amount.

Banks: Regulators are due to reveal the results of their stress tests on 19 of the largest U.S. banks Thursday, but results are already leaking out.

Bank of America (BAC, Fortune 500) faces a roughly $34 billion shortfall, several reports citing sources familiar with the results said late Tuesday.

In the run-up to the official release, speculation has been brewing that anywhere between 10 and 14 of the banks could be forced to boost their capital.

Citigroup (C, Fortune 500) and Wells Fargo (WFC, Fortune 500) are also widely believed to face shortfalls.

Employment: The job market will also be getting some attention before the bell. ADP Payroll Services will release statistics for April, and is expected to show a decline of 643,000 private sector jobs for the month, according to a consensus of economist opinion from Briefing.com. For the prior month, ADP reported a loss of 742,000 jobs.

This will be the first of a slew of reports on the job market coming out later this week, on Thursday and Friday.

Companies: After U.S. markets closed Tuesday, Walt Disney (DIS, Fortune 500) reported weaker earnings that topped estimates. The company also reported weaker revenue that fell short of expectations.

International: The Hang Seng index in Hong Kong closed lower. European markets were mixed.

Oil and money: The price of oil rose in morning trading by 22 cents a barrel to $54.06. The dollar rose against the euro, but fell versus the yen and the British pound. 

NEW YORK (CNNMoney.com) -- Stocks slumped Tuesday as investors retreated after pushing the major gauges to multi-month highs in the previous session.

After the close, Walt Disney (DIS, Fortune 500) reported weaker earnings that topped estimates on weaker revenue that missed estimates. Shares gained in extended-hours trading.

The Dow Jones industrial average (INDU) lost 16 points, or 0.2%. The S&P 500 (SPX) index lost 3 points, or 0.4%. The Nasdaq composite (COMP) fell 9 points, or 0.4%.

Stocks slumped as investors pulled back after a strong start to the week. On Monday, the Nasdaq ended at a six-month high and the Dow and S&P 500 ended at nearly 4-month highs.

Expectations that the worst is over for the economy have lifted stocks over the last two months, with the Nasdaq rising 8 straight weeks after falling to a 6-year low. The Dow and S&P 500 have risen for 7 of 8 weeks, after falling to more than 12-year lows.

The rally propelled the S&P 500 by 34% since March 9. After such a run, investors were a little uncertain of what to do next, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams.

"The momentum is still to the upside, but we've had a very big move up and so people are hesitating a little," he said.

Wednesday brings the private sector employment report from payroll services firm ADP, a precursor to the government's non-farm payrolls report due Friday. Employers are expected to have cut 643,000 jobs from their payrolls after cutting 742,000 in the prior month.

Bernanke: The economy will bottom and start to rebound later this year, but the recovery process will be slow and choppy, Federal Reserve Chairman Ben Bernanke told the Joint Economic Committee. His comments essentially reiterated the statement from the last Fed policy meeting.

"The macroeconomic picture is still for recovery at the end of the year, something Bernanke talked about today," Rovelli said. "But if we don't see signs of that on the way in the economic news by the summer, you're going to see a big selloff."

Banks: At least 10 of the 19 big banks under review by the government may need to boost their capital, the Wall Street Journal reported. The government has been testing the banks' viability in case the economic slowdown accelerates in the coming months. The results of the "stress tests" are due late Thursday.

Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500) and Wells Fargo (WFC, Fortune 500) have all been mentioned over the last few days as companies that will potentially need to raise more capital.

AIG (AIG, Fortune 500) is expected to report a quarterly loss when it releases results late Thursday. However, the company is not expected to need more money from the U.S. government, Reuters reported. Shares rallied 14% Tuesday.

In other financial news, Swiss bank UBS (UBS) reported a steep quarterly loss and said it expects loan losses to keep climbing in the months ahead.

Bank shares slipped, sending the KBW Bank (BKX) sector index down by 1.6%.

Company news: Dow component Kraft Foods (KFT, Fortune 500) reported higher quarterly earnings that topped estimates. But revenue fell as the stronger dollar hurt sales overseas. Kraft shares rallied 4%.

A variety of influential technology shares slipped, dragging on the Nasdaq, including Intel (INTC, Fortune 500), Dell (DELL, Fortune 500), Microsoft (MSFT, Fortune 500) and Applied Materials (AMAT, Fortune 500).

Market breadth was negative. On the New York Stock Exchange, losers topped winners by eight to seven on volume of 1.53 billion shares. On the Nasdaq, decliners topped advancers five to four on volume of 2.57 billion shares.

Economy: The Institute for Supply Management's index on the services sector of the economy rose to 43.7 in April from 40.8 in March. Economists surveyed by Briefing.com thought it would rise to 42.2.

Any reading below 50 still indicates contraction, but the improvement suggests the pace of the slowdown is easing.

Bonds: Treasury prices slipped, raising the yield on the benchmark 10-year note up to 3.16% from 3.15% Monday. Treasury prices and yields move in opposite directions.

Borrowing costs improved. The 3-month Libor rate, a key bank lending rate, fell to 0.99% Tuesday, its lowest point on record. The overnight Libor rate held steady at 0.24%.

Other markets: In global trading, markets in Hong Kong and China ended higher, while markets in Japan, South Korea and Thailand were closed for national holidays. European markets ended mixed.

In currency trading, the dollar gained versus the euro and the yen.

U.S. light crude oil for June delivery fell 63 cents to settle at $53.84 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery settled up $2.10 to $904.30 an ounce. 

At 7:43 a.m. ET, Dow Jones industrial average, the Nasdaq-100 and S&P 500 futures were lower, after being up earlier.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks climbed Monday, buoyed by optimism about the economic recovery. The Nasdaq rose to a six-month peak while the Dow and S&P 500 reached their highest levels in almost four months.

"It's going to take a powerful catalyst to [continue to] move us forward," said Art Hogan, chief market strategist at Jefferies & Co. "It's always difficult to have follow through when you're up 3%."

Economy: Federal Reserve Chairman Ben Bernanke is due to give his outlook on the economy to the Joint Economic Committee.

A reading on the services sector of the economy from the Institute for Supply Management, a purchasing managers' group, is also due out.

Banks: The financial sector will remain in focus as investors await the release of the results of the U.S. government's stress tests on banks, which are due out Thursday.

At least 10 of the 19 big banks under review -- including Bank of America (BAC, Fortune 500) and Citigroup (C, Fortune 500) -- may need to boost their capital, according to a report in The Wall Street Journal. The number of reported banks that may need to boost their capital requirements has been fluctuating in the runup to the release of the results.

Companies: Swiss bank UBS (UBS) reported a $1.76 billion quarterly loss and said it remains cautious about the outlook because the global economy has continued to worsen.

Other companies due to release quarterly results included Kraft Foods (KFT, Fortune 500) and CVS Caremark (CVS, Fortune 500). Walt Disney (DIS, Fortune 500) was expected after the closing bell.

World markets: Stocks in Asia finished the session higher. Japanese and South Korean markets were closed for holidays. In European trading, shares in London were higher, while stocks in Paris and Frankfurt fell.

Oil and money: Oil fell 23 cents a barrel to $54.24. The dollar rose against the euro and the yen, but slipped versus the British pound.