Why did the S&P 500 and Dow Jones fall on Wednesday?

Major U.S. stock indexes fell due to declines in tech stocks and disappointing earnings reports from large banks like Wells Fargo and Bank of America.

What caused Wells Fargo's stock to drop?

Wells Fargo's stock dropped significantly after the bank reported weaker-than-expected profits and revenue for the latest quarter, citing lower trading fees.

Which sectors supported the U.S. stock market despite overall losses?

The energy sector, with companies like Exxon Mobil and Chevron, provided support as oil prices rose, and stocks of smaller companies also performed well.

Home / Business and Economy / Tech Stocks Drag Down Market Despite Broader Gains

Tech Stocks Drag Down Market Despite Broader Gains

16 Jan

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Summary

Major U.S. stock indexes closed lower, led by tech giants.
Several large banks reported weaker-than-expected results.
Exxon Mobil and oil companies provided market support.

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.