Wall Street Drops as Bank Earnings Disappoint, Tech Stocks Slide/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street dropped Wednesday as weak earnings from major banks and falling tech stocks dragged markets lower. The S&P 500 fell 1%, with Wells Fargo, Bank of America, and Nvidia among the biggest losers. Oil stocks like Exxon rose as crude prices climbed, while bond yields dipped on mixed U.S. economic data.
Market Quick Look
- S&P 500: -1.0%
- Dow Jones: -248 pts (-0.5%)
- Nasdaq: -1.5%
- Wells Fargo: -4.5%, Bank of America: -4.7%, Nvidia: -2.3%
- Exxon Mobil: +1.9%, Chevron: +1.7%
- 10-Year Treasury Yield: 4.14% (down from 4.18%)
- Oil Prices: +0.9% on Iran unrest
- Gold: +0.4%, nearing record high
Wall Street Drops as Bank Earnings Disappoint, Tech Stocks Slide
Deep Look
NEW YORK (AP) — Wall Street slipped Wednesday morning as weaker-than-expected earnings from major banks and a retreat in tech stocks dragged the market lower, snapping recent momentum following record highs.
- S&P 500 fell 1%, headed for a second straight loss after recently touching an all-time high.
- Dow Jones Industrial Average dropped 248 points (0.5%)
- Nasdaq Composite tumbled 1.5%, weighed by weakness in technology shares.
Bank Earnings Underwhelm Investors
The financial sector led the market lower after several big banks released mixed quarterly results:
- Wells Fargo declined 4.5% after reporting lower-than-expected revenue and earnings, citing weaker trading fees and one-off costs.
- Bank of America dropped 4.7% despite beating profit expectations. Investors were spooked by rising operating expenses.
- Citigroup, amid a broad restructuring under CEO Jane Fraser, fell 3% after posting its results.
Analysts say strong profit growth is critical to sustaining high stock valuations. Expectations for S&P 500 earnings in Q4 2025 are for an 8% year-over-year increase, according to FactSet.
Tech Retreat Deepens Market Losses
High-growth tech names—some of the biggest market movers in recent years—were also under pressure:
- Nvidia slid 2.3%
- Broadcom dropped 4.6%
The sell-off comes as investors take profits after heavy gains fueled by optimism over artificial intelligence and chip demand.
Meanwhile, Biogen fell 5% after the biotech company warned that R&D and acquisition-related costs would weigh on Q4 profits.
Oil Stocks Rise as Crude Prices Climb
Oil giants helped cushion the market’s decline:
- Exxon Mobil rose 1.9%
- Chevron gained 1.7%
Crude oil prices rose 0.9% on Wednesday, pushing U.S. benchmark prices more than 7% higher year-to-date. Ongoing protests in Iran—an OPEC member—are raising concerns about potential supply disruptions, supporting energy prices.
Gold prices also climbed 0.4%, nearing record highs, reflecting investor unease across markets.
Bond Yields Fall on Mixed Economic Data
U.S. Treasury yields slipped as investors moved into safer assets:
Mixed economic reports provided few clear signals:
- Retail sales in November were stronger than expected—good news for consumer spending.
- Wholesale inflation ticked up modestly, while Tuesday’s consumer inflation report showed price growth remained above the Fed’s 2% target.
- Home sales data showed an unexpected rise in occupied home purchases last month.
Despite mixed signals, traders still expect the Federal Reserve to begin cutting rates mid-year, likely in June, with at least two cuts anticipated by year-end, according to CME Group futures data.
Global Markets Mixed
- Japan’s Nikkei 225 surged 1.5%, hitting another record as speculation grew that Prime Minister Sanae Takaichi may call early elections.
- Hong Kong’s Hang Seng rose 0.6%, while Shanghai’s index dipped 0.3% following data showing China’s trade surplus surged 20% in 2025—a record, despite heightened U.S. tariffs under President Donald Trump.
You must Register or Login to post a comment.