FX.co ★ US Stocks Extend Losses as Tech and Banks Slide

U.S. stock markets experienced a decline for the second consecutive session on Wednesday, slipping from recent record highs. This retreat occurred as investors assessed the initial corporate earnings, mixed economic indicators, and increasing geopolitical tensions. The S&P 500 decreased by approximately 0.5%, while the Nasdaq saw a more significant drop of 1%, and the Dow Jones Industrial Average dipped by around 42 points. The downturn was primarily driven by weaknesses in the technology and financial sectors. Semiconductor companies faced considerable pressure, with notable losses in Broadcom (down 4.1%), Nvidia (down 1.5%), and Micron (down 1.4%) following reports of Chinese officials imposing restrictions on certain American-made chips and cybersecurity software. Financial stocks also continued their downward trend; Wells Fargo decreased by 4.5% due to lower-than-expected revenue, while Bank of America (down 3.8%) and Citigroup (down 3.3%) fell despite surpassing profit expectations. This was amidst anxiety over a proposed cap by then-President Trump on credit card interest rates. Meanwhile, macroeconomic data offered limited support, as modest wholesale inflation and strong retail sales bolstered predictions that the Federal Reserve might maintain steady interest rates in the short term.