Tech Stocks Drag Down Market Despite Broader Gains

U.S. stock market indexes concluded Wednesday's trading session in negative territory, despite a prevailing upward trend in the majority of Wall Street stocks. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all registered losses, marking the second consecutive day of declines for the S&P 500 after it reached an all-time high. This downturn was notably influenced by financial institutions, with Wells Fargo falling 4.6% after reporting weaker profits and revenue than anticipated, attributed to reduced trading fees.

Other major banks also faced pressure, with Bank of America declining 3.8% despite exceeding profit expectations, as concerns arose regarding future expenses. Citigroup saw a 3.3% drop following its own profit report. Technology stocks, which have recently experienced a frenzy due to artificial intelligence advancements, gave back some of their substantial gains, with Nvidia and Broadcom experiencing notable declines. Analysts are closely watching for S&P 500 companies to report earnings per share approximately 8% higher than the previous year for the final quarter of 2025.

However, the market's descent was somewhat mitigated by gains in the energy sector, with Exxon Mobil and Chevron climbing as U.S. oil prices rose. Stocks of smaller companies also outperformed, evidenced by the Russell 2000 index's increase of 0.7%. Biogen was an exception in the biotech sector, sinking 5% due to expected impacts from research and development expenses on its fourth-quarter 2025 profits.