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U.S. Stocks Extend Pullback as Banks Slump and Tech Weakens on China Chip Curbs

Policy uncertainty and geopolitical risk pushed investors toward oil and record-high precious metals.

Overview

  • Major indexes posted a second straight decline, with the S&P 500 down 0.5%, the Nasdaq off 1.0% and the Dow easing 0.1%.
  • Bank shares fell despite mixed fourth-quarter beats, as Wells Fargo missed while Bank of America and Citigroup slid on high expectations, rate-cap worries and broader Fed concerns.
  • Technology stocks retreated after Reuters reported Chinese authorities advised blocking Nvidia’s H200 chips, while separate limits on U.S. and Israeli cybersecurity software pressured names like Broadcom and Fortinet.
  • President Donald Trump signed a proclamation imposing a 25% tariff on certain semiconductors, adding to trade frictions already weighing on chip-related equities.
  • Safe-haven and energy trades strengthened, with gold setting fresh records, silver topping $92, and oil rising on U.S.–Iran tensions, while CPI held at 2.7% year over year and core at 2.6%.