US stocks finished lower on Wednesday, led by a drop in the Nasdaq, with technology shares declining as investors moved into more defensive areas, while American bank stocks extended recent losses following some mixed quarterly results.
The Dow Jones Industrial Average fell 42.36 points, or 0.09 per cent, to 49,149.63, the S&P 500 lost 37.14 points, or 0.53 per cent, to 6,926.60 and the Nasdaq Composite lost 238.12 points, or 1.00 per cent, to 23,471.75.
Financials including the banks, which were up sharply in 2025, have fallen this week amid concerns over US President Donald Trump's proposed credit card changes.
Tech shares slip
S&P 500 financials fell along with the S&P 500 technology sector while more defensive groups including consumer staples rose.
On the flip side, energy shares rose, with oil prices settling higher amid worries about Iranian supply disruptions. Oil eased later in the day.
Investors also digested data earlier on Wednesday showing producer prices in the US matched forecasts in November but that retail sales topped expectations. A report on Tuesday showed December consumer prices rose as projected.
Interest rates are widely expected to hold steady through the first half of the year, including at the Federal Reserve's January meeting, with traders pricing in at least two cuts before year-end, according to LSEG data.
