Wall Street ends lower, led by drop in Nasdaq, with tech, banks falling
Wed January 14, 2026 6:39 PM
It was a third day of the financial markets dealing with the stunning Trump proposal of a 10% cap on credit card interest with Jamie Dimon and other major bankers arguing that all it will accomplish is denying millions of consumers access to credit at all, and that will do untold damage to the economy. Bank stocks and the banking index fell again. Even Citigroup and BofA fell even though their Q4 beat expectations. Or it could be argued that after an illustrious 2025, investors are simply taking profits out of the bank stocks. All three indexes actually fell dramatically until about noon before recovering most losses by close.
The exception was the Nasdaq where, due to uncertainties, there is a rotation out of tech and into defensive stocks as reflected in the boost in consumer staples and the continuing rally in small caps. Sentiment is to rotate out of the expensive, dominant, overvalued megacaps and into value and defensive sectors. It makes sense as the market always does much better when risk is spread among many companies rather than just the blessed few. On another plus note, PPI came in today matching forecasts following CPI rising as predicted. The selloff was vigorous with an astounding 22.54 billion shares traded vs the 16.69 average.
DJ: 49,191.99 -398.21 NAS: 23,709.87
-24.03 S&P: 6,963.74
-13.53 1/13
DJ: 49,149.63 -42.36 NAS: 23,471.75
-238.12 S&P: 6,926.60
-37.14 1/14
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