New York, Jan 14, 2026, 5:06 PM EST — After-hours
- Wall Street slipped, with the Nasdaq falling 1% as tech and bank shares took a hit
- Wells Fargo dropped after missing profit targets; Citi and Bank of America also slipped, even though they beat estimates
- Thursday brings more big-bank earnings and new U.S. economic data to watch
U.S. stocks slipped on Wednesday, with the Nasdaq falling 1% as tech and bank shares took a hit while investors shifted toward safer bets. The Dow dropped 42.36 points to 49,149.63, the S&P 500 lost 37.14 points to 6,926.60, and the Nasdaq slid 238.12 points to 23,471.75. Yet, the small-cap Russell 2000 hit a record closing high. “After a nice run … you’re seeing profit-taking,” said Michael O’Rourke, chief market strategist at JonesTrading. (Reuters)
The pullback highlights the early days of fourth-quarter earnings season, a period when investors often punish any misses and unwind crowded trades. Financial stocks have been volatile since President Donald Trump suggested a one-year 10% cap on credit-card interest rates — a move that could cut into lenders’ profits on high-yield revolving balances. (Reuters)
New economic figures failed to clear up the uncertainty. Retail sales climbed 0.6% in November, surpassing expectations. The “core” retail sales metric, which excludes autos, gas, building materials, and food services, increased by 0.4%. Michael Pearce, chief U.S. economist at Oxford Economics, described the consumer trend as “K-shaped,” with wealthier households carrying more of the load. (Reuters)
Wells Fargo dropped nearly 5% after missing Q4 profit estimates and taking a $612 million hit from severance charges. The bank also projected about $50 billion in net interest income for 2026 — the margin between earnings on loans and costs on deposits — which came in just under the average analyst forecast. Brian Mulberry, portfolio manager at Zacks Investment Management, noted that “loan quality remains high” but highlighted the challenge of maintaining steady interest income amid fierce competition for deposits. (Reuters)
Bank of America topped profit forecasts, driven by record net interest income and a boost in trading revenue, but its shares fell roughly 3% in early trading. CFO Alastair Borthwick told analysts the bank experienced “growth in all of the consumer borrowing categories.” Meanwhile, Aptus Capital’s David Wagner described BofA as a “North Star” gauge of household health. (Reuters)
Citigroup beat Wall Street profit expectations as dealmaking picked up, yet its shares slipped about 4% following a roughly $1.2 billion pre-tax loss linked to the planned sale of its Russia unit. “Citigroup could be officially shedding its laggard reputation,” Wagner noted. CEO Jane Fraser told staff “the bar is raised” and signaled further job cuts ahead. (Reuters)
Technology stocks slipped again following a Reuters report that Chinese regulators instructed local companies to halt use of cybersecurity software from over a dozen U.S. and Israeli firms, citing national security concerns. Broadcom, whose VMware unit was named in the report, dropped more than 5% in afternoon trading. Fortinet slid roughly 2%, while Palo Alto Networks edged down about 1%. (Reuters)
Inflation data is still weighing on the market. Consumer prices increased 2.7% over the year ending in December. Food prices climbed 0.7% in December alone, marking the sharpest monthly rise since October 2022 — highlighting how inflation impacts households differently, even as the overall rate eases. (Reuters)
The Federal Reserve’s Beige Book painted a picture of steady but unspectacular growth, noting activity picked up in most districts while hiring remained largely flat and prices rose moderately. Markets are pricing in the Fed holding rates steady in the 3.50%-3.75% band at its Jan. 27-28 meeting, with futures signaling the first cut could come around June. (Reuters)
Still, the risks haven’t vanished. A number of investors worry the latest inflation figures hide underlying strain that could emerge in the Fed’s favored Personal Consumption Expenditures (PCE) price index. Meanwhile, food prices are climbing again, fueling fresh debate over affordability. This poses a tough challenge for bank profits and high-flying tech stocks if hopes for rate cuts fade once more. (Reuters)
All eyes shift to Thursday, when Goldman Sachs and Morgan Stanley are set to release earnings. At 8:30 a.m. ET, the Philadelphia Fed’s monthly manufacturing survey will drop, alongside the Labor Department’s import and export price indexes. (Reuters)
