Overview
- U.S. indexes fell for a second straight session on Wednesday, with the S&P 500 down 0.5%, the Nasdaq off 1.0% and the Dow 0.1% lower, while the Russell 2000 rose.
- Bank shares dropped despite mixed beats, as Bank of America, Citigroup and Wells Fargo fell 3%–5% following results and growing scrutiny of a proposed cap on credit‑card interest rates.
- Big Tech retreated after reports that Chinese authorities are blocking Nvidia’s H200 chips and advising firms to stop using U.S. and Israeli cybersecurity software, pressuring names like Broadcom and Fortinet.
- Policy crosscurrents deepened as President Trump imposed a 25% tariff on certain semiconductors and the Supreme Court again delayed a tariff ruling, while concerns about Fed independence persisted after Chair Jay Powell confirmed a DOJ criminal probe.
- Inflation stayed in line with forecasts at 2.7% year over year for December (2.6% core), and oil and precious metals rose on Iran tensions before crude pulled back overnight following Trump’s de‑escalatory comment on executions.