US stocks posted a second straight session of losses on Wednesday as investors digested a new round of bank earnings and rising geopolitical tensions. Technology stocks led the decline, while ongoing uncertainty around the Middle East and US foreign policy added to market caution.
Chipmakers were among the biggest drags on the market. Broadcom fell 4.2 percent, while Nvidia and Micron Technology each lost about 1.4 percent. Sentiment toward the sector weakened after reports suggested potential restrictions on exports of Nvidia’s H200 artificial intelligence chips, just a day after US authorities approved limited overseas shipments of the product.
Financial stocks also remained under pressure. The sector’s weakness intensified following US President Donald Trump’s proposal to impose a 10 percent cap on credit card interest rates. Since Friday, major US banks have seen heavy selling, with Bank of America down about 7 percent for the week and Citigroup and Wells Fargo both down roughly 8 percent.
Geopolitical tensions added another layer of risk. Oil prices extended their rally for a fifth straight day as markets reacted to growing unrest in Iran and rising friction between Tehran and Washington. Traders remain concerned that any disruption in Iranian supply could significantly tighten the global energy market.
Trump canceled all scheduled talks with Iranian officials and publicly voiced support for anti government protesters. Crude oil rose more than 2 percent on Tuesday and added another 1 percent on Wednesday. At the same time, US officials met with counterparts from Denmark and Greenland as Trump continues to push for US control of the strategically important Arctic territory, a stance that has unsettled global markets.
US Stocks
Large cap technology stocks broadly declined. Alphabet slipped 0.04 percent, Apple fell 0.42 percent, Nvidia dropped 1.44 percent, Tesla lost 1.79 percent, Microsoft declined 2.4 percent, Amazon fell 2.45 percent, and Meta dropped 2.47 percent.
Chinese stocks traded mixed. The Nasdaq Golden Dragon China Index fell 0.23 percent. Trip.com plunged more than 17 percent, PDD Holdings lost nearly 4 percent, Li Auto, NIO, XPeng and Chagee fell more than 2 percent, while Bilibili gained more than 6 percent.
Market Snapshot
Dow Jones fell 42.36 points, or 0.09 percent, to 49149.63
Nasdaq dropped 238.12 points, or 1.00 percent, to 23471.75
S&P 500 declined 36.75 points, or 0.53 percent, to 6926.99
Hong Kong Stocks
Hong Kong shares fell across the board at midday. Internet stocks were mostly lower, with Kuaishou down more than 3 percent, while Alibaba and Bilibili dropped over 2 percent. NetEase, Tencent and JD.com lost more than 1 percent.
Lithium battery stocks were among the few bright spots. Ganfeng Lithium gained over 5 percent after Chinese authorities announced a reduction in export tax rebates for battery products starting in April. Market participants believe the move could increase domestic stockpiling and further tighten the already strained lithium market.
Travel and tourism stocks suffered heavy losses. Trip.com fell more than 19 percent after China’s market regulator launched an antitrust investigation into the company over alleged abuse of market dominance. Trip.com said it would cooperate fully with authorities and that its operations remain normal.
Hong Kong Market Snapshot
Hang Seng Index fell 0.55 percent to 26850.78
Hang Seng Tech Index fell 1.83 percent to 5799.85
China Enterprises Index fell 0.69 percent to 9250.87
A50 and China Stocks
Mainland Chinese equities also traded lower. At midday, the Shanghai Composite fell 0.6 percent, the Shenzhen Component dropped 0.44 percent, and the ChiNext Index declined 1.02 percent. The Beijing Stock Exchange 50 Index fell 2.31 percent. Total market turnover reached 18952 billion yuan, significantly lower than the previous session.
Precious metals, energy metals and agricultural chemical stocks showed relative strength, while aerospace, commercial space and AI related sectors came under pressure.
China Market Snapshot
Shanghai Composite fell 0.60 percent to 4101.52
Shenzhen Component fell 0.44 percent to 14186.11
ChiNext Index fell 1.02 percent to 3314.88
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