Wall Street slumps as bank and tech stocks fall

NEW YORK (AP) — U.S. stock indexes are falling on Wednesday following mixed profit reports from several big banks.

The S&P 500 sank 1% and was on track for a second straight loss after setting its all-time high. The Dow Jones Industrial Average was down 248 points, or 0.5%, as of 11 a.m. Eastern time, and the Nasdaq composite was 1.5% lower.

Wells Fargo helped pull the market lower after falling 4.5%. The San Francisco-based bank reported weaker profit and revenue for the latest quarter than expected, with analysts citing lower trading fees and other miscellaneous items.

Bank of America fell 4.7% despite reporting a stronger profit than analysts expected, with some consternation about the size of its upcoming expenses. Citigroup, which is in the midst of a turnaround under Chair and CEO Jane Fraser, fell 3% following its own profit report.

Companies across industries need to report strong growth in profits to justify how high their stock prices have run recently. Analysts are looking for businesses across the S&P 500 to report earnings per share for the final three months of 2025 that are roughly 8% higher than a year earlier, according to FactSet.

Biogen sank 5% after the biotechnology company said it expects to take a hit to its profit for the fourth quarter of 2025 due to research and development expenses and other costs that it acquired.

The heaviest weights on the market were tech stocks, which gave back some of their huge gains made over recent years from the frenzy around artificial-intelligence technology. Nvidia fell 2.3%, and Broadcom sank 4.6%.

Still, nearly as many stocks on Wall Street rose as fell, and the strongest forces keeping the S&P 500 from steeper losses were Exxon Mobil and other oil companies.

Exxon Mobil rose 1.9%, and Chevron climbed 1.7% as the price of a barrel of benchmark U.S. crude added 0.9% to bring its gain for the year to more than 7%.

Oil prices have rallied as protests have swept Iran, which is a member of the OPEC group that helps set crude prices. The protests could lead to disruptions in production and squeeze supplies of crude.

Besides the rise in oil prices, gold's price also rose 0.4% toward a record in another signal of nervousness across financial markets.

In the bond market, Treasury yields sank as investors sought investments seen as safer. Several reports on the U.S. economy also came in mixed.

One said that shoppers spent more at U.S. retailers in November than economists expected. That could be an encouraging signal about the main engine of the U.S. economy, but economists pointed to some concerning signals were underneath the surface.

A separate report said prices rose modestly at the U.S. wholesale level in November. It followed a report on Tuesday that said inflation at the U.S. consumer level was close last month to economists’ expectations, though it remained above the Federal Reserve’s 2% target.

A third report said sales of occupied homes were stronger last month than economists expected. Taken altogether, the data did little to change Wall Street's expectation that the Federal Reserve will cut its main interest rate at least twice this year to shore up the job market, likely beginning around June, according to CME Group.

The yield on the 10-year Treasury fell to 4.14% from 4.18% late Tuesday.

In stock markets abroad, Japan’s Nikkei 225 rallied 1.5% to another record expectations grew that Prime Minister Sanae Takaichi may call general elections soon.

Indexes were mixed elsewhere. Stocks rose 0.6% in Hong Kong but fell 0.3% in Shanghai after a report showed China’s trade surplus surged 20% in 2025 to a record despite President Donald Trump’s tariffs.

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AP Business Writers Yuri Kageyama and Matt Ott contributed.