US stocks retreated on Wednesday as investors sold off technology shares and major bank stocks declined, continuing a subdued start to the fourth-quarter earnings season.
The tech-heavy Nasdaq Composite sank more than 1%, while the S&P 500 fell 0.5%, with both indexes trimming larger losses from earlier in the session. The Dow Jones Industrial Average moved down around 0.1%, extending a pullback that has dragged Wall Street indexes from recent highs.
Technology stocks led the day's declines as megacaps fell. Nvidia shares lost ground even after the US formally approved its chip exports to China, as reports emerged about potential restrictions. Tesla, Broadcom, and Oracle shares also posted notable losses.
Wednesday brought quarterly reports from Bank of America and Wells Fargo, which both posted a surge in profit as trading activity powered results. But their stocks fell, along with that of Citigroup, adding to early earnings-season concerns that began with an underwhelming release from heavyweight JPMorgan Chase.
Investors parsed wholesale inflation data that followed a mild reading on consumer inflation. This week's data has shown price pressures remain sticky, firming up expectations for a near-term hold on interest rates while keeping hopes alive for two cuts this year.
Elsewhere, metals continued a furious climb. Gold and silver touched fresh record highs, with silver breaking above $90 for the first time. The blistering rally in precious metals is being stoked by rising geopolitical tensions and escalated attacks on the Federal Reserve, both with President Trump at their center.
Markets were also alert to the Supreme Court, which again declined to rule on a closely watched challenge to Trump's authority to set tariffs. Trump has framed the case as a national security flashpoint, saying if it rules against him, "WE’RE SCREWED!"