US stock markets moved lower once more on Wednesday. Investors turned cautious after seeing mixed results from major banks. Rising prices for oil and gold added to the nervous mood.
Key Indexes Show Losses
The S&P 500 index slipped 0.3 percent. This extended its decline from the previous day when it had reached an all-time high. The Dow Jones Industrial Average fell 84 points, which equals a 0.2 percent drop. The Nasdaq composite was down 0.5 percent during early trading, according to an AP report.
Commodity Prices and Safe Havens Gain
Market sentiment remained fragile. Crude oil prices added about 1 percent to recent gains. Concerns are growing that protests in Iran could disrupt global oil supplies. Gold rose nearly 1 percent, moving closer to its record levels. Treasury yields eased as investors looked for safer assets.
Bank Stocks Drag Down the Market
Bank stocks put pressure on the major benchmarks. Wells Fargo dropped 4.5 percent. The bank reported quarterly profit and revenue that missed expectations. Analysts pointed to weaker trading fees and other items. Bank of America slid 3.4 percent. This happened even though it posted stronger-than-expected profits. Citigroup pared early gains to trade 0.3 percent lower. Its results fell short of forecasts.
Earnings Growth Needed to Justify Valuations
With equity valuations elevated, analysts said companies need to deliver solid earnings growth. This is necessary to justify current price levels. Consensus estimates tracked by FactSet suggest earnings per share for S&P 500 companies in the final quarter of 2025 are expected to be about 8 percent higher than a year earlier.
Energy Stocks Provide Some Support
Energy stocks offered a bit of support to the market. Exxon Mobil rose 1.3 percent. This helped limit broader market losses. US benchmark crude gained 0.8 percent. This takes its year-to-date increase to 7 percent.
Bond Market and Economic Data
In the bond market, yields edged lower following mixed economic signals. Data showed US retail spending in November exceeded expectations. This is a positive sign for consumer demand. However, economists flagged underlying weaknesses. "Sales of big-ticket items fell from the prior year," said Brian Jacobsen, chief economic strategist at Annex Wealth Management.
Another report showed US wholesale prices rose modestly in November. This followed data earlier in the week that indicated consumer inflation remained above the Federal Reserve's 2 percent target. The inflation data broadly met expectations.
The yield on the 10-year US Treasury slipped to 4.15 percent from 4.18 percent on Tuesday. The two-year yield eased to 3.52 percent.
Overseas Markets Show Mixed Performance
Overseas markets presented a mixed picture. Japan's Nikkei 225 jumped 1.5 percent to a fresh record. This came amid expectations that Prime Minister Sanae Takaichi may call early elections. In Asia, Hong Kong's Hang Seng rose 0.6 percent. Shanghai's index fell 0.3 percent. This decline followed data showing China's trade surplus surged 20 percent in 2025 despite US tariffs.
