U.S. stocks retreated Wednesday as investors digested another wave of bank earnings, fresh economic data, and rising geopolitical uncertainty.
The tech-heavy Nasdaq Composite led losses, falling roughly 1.6%, while the S&P 500 dropped about 1%. The Dow Jones Industrial Average slid around 0.6%, pulling further away from recent record highs.
Tech Stocks Lead the Decline
Megacap technology names weighed heavily on the market. Shares of Nvidia fell despite confirmation that chip exports to China had received regulatory approval, as reports surfaced of potential new restrictions. Tesla and Broadcom also declined, adding pressure to the Nasdaq.
Bank Earnings Fail to Inspire
Financial stocks extended their pullback even as earnings showed solid profit growth driven by strong trading activity. Bank of America and Wells Fargo both reported higher profits, but shares fell sharply. Citigroup and JPMorgan Chase also traded lower, extending early earnings-season weakness.
Market strategists noted that the sell-off appeared driven more by policy uncertainty and sentiment than by fundamentals. Concerns around regulatory risk and limits on bank profitability continue to overshadow otherwise solid results.
Economic Data Reinforces Rate Expectations
On the macro front, wholesale inflation came in muted, following a softer consumer inflation reading earlier in the week. Together, the data strengthened expectations that the Federal Reserve will keep interest rates steady in the near term. Retail sales rose more than expected in a delayed November release, offering a modest sign of consumer resilience.
Precious Metals Surge to New Highs
Gold and silver rallied sharply, pushing to fresh record highs. Silver briefly topped $90 an ounce as investors sought protection amid geopolitical tensions, central bank uncertainty, and expectations for easier monetary policy later in the year.
What Investors Are Watching Next
Attention now turns to upcoming earnings from Goldman Sachs, Morgan Stanley, and BlackRock, which will help complete the picture for the financial sector.
WSA Take
Markets are struggling to find footing as strong earnings collide with policy risk and geopolitical uncertainty. With tech leadership cracking and banks losing momentum, investors appear increasingly selective — and more defensive — heading deeper into earnings season.
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