WASHINGTON (dpa-AFX) - Stocks have moved sharply lower over the course of the trading day on Wednesday, adding to the modest losses posted in the previous session. The major averages have all moved to the downside, with the tech-heavy Nasdaq showing a notable slump.
Currently, the major averages are just off their lows of the session. The Nasdaq is down 380.83 points or 1.6 percent at 23,329.04, the S&P 500 is down 74.49 points or 1.1 percent at 6,889.25 and the Dow is down 282.68 points or 0.6 percent at 48,909.31.
The weakness on Wall Street may partly reflect growing concerns about rising geopolitical tensions around the world.
President Donald Trump's threats to take control of Greenland have made headlines recently, while traders are also keeping an eye on political unrest in Iran and the ongoing Russia-Ukraine war.
A slump by shares of Wells Fargo (WFC) is also weighing on the markets, as the financial services giant is plunging by 5.5 percent.
Wells Fargo is under pressure after the company reported better than expected fourth quarter earnings but weaker than expected revenues.
Shares of Bank of America (BAC) have also tumbled by 4.9 percent even though the company reported fourth quarter results that exceeded analyst estimates.
Citigroup (C) has also shown a significant move to the downside even though the company reported better than expected fourth quarter results.
On the U.S. economic front, the Commerce Department released a report showing retail sales in the U.S. increased by more than expected in the month of November.
The Commerce Department said retail sales climbed by 0.6 percent in November after edging down by a revised 0.1 percent in October.
Economists had expected retail sales to rise by 0.4 percent compared to the unchanged reading originally reported for the previous month.
Excluding sales by motor vehicle and parts dealers, retail sales grew by 0.5 percent in November after inching up by 0.2 percent in October. Ex-auto sales were expected to increase by 0.4 percent.
A separate report released by the Labor Department showed a modest increase by U.S. producer prices in the month of November.
Sector News
Airline stocks have shown a substantial move to the downside on the day, with the NYSE Arca Airline Index tumbling by 2.4 percent. The index continues to give back ground after reaching a two-year closing high last Friday.
Significant weakness is also visible among software stocks, as reflected by the 2.3 percent slump by the Dow Jones U.S. Software Index.
Networking, semiconductor and banking stocks are also seeing considerable weakness, while energy and telecom stocks have shown strong moves to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.5 percent, while Hong Kong's Hang Seng Index climbed by 0.6 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index rose by 0.5 percent, the French CAC 40 Index dipped by 0.2 percent and the German DAX Index is fell by 0.4 percent.
In the bond market, treasuries are extending the upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.3 basis points at 4.138 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
