U.S. stocks pulled back on Wednesday as Wall Street digested a fresh wave of big bank earnings alongside delayed economic data releases, while geopolitical tensions added another layer of caution to trading. The tech-heavy Nasdaq Composite led losses, sliding roughly 1.6% as megacap technology stocks retreated. The S&P 500 fell about 1%, while the Dow Jones Industrial Average dropped around 0.6%, pressured by weakness in financial stocks after the sector failed to extend early earnings-season momentum.
Market Movers:
- TG Therapeutics (TGTX) surged about 9% after the drugmaker reported preliminary full-year 2025 global revenue of roughly $616 million. The company also issued an upbeat 2026 revenue outlook, targeting $875 million to $900 million in global sales driven by continued momentum for its multiple sclerosis drug BRIUMVI.
- Infosys (INFY) jumped more than 7% after the IT services firm reported fiscal third-quarter revenue growth of 3.2% year over year. Results beat expectations as demand held up better than feared, particularly across digital transformation and cloud-related services.
- Intel (INTC) rose around 2.5% following an upgrade from KeyBanc, which cited improving execution in the chipmaker’s manufacturing business. Analysts also pointed to rising demand for Intel’s chips tied to AI data center buildouts.
- Rivian Automotive (RIVN) sank nearly 9% after UBS downgraded the stock to Sell, warning that expectations remain elevated relative to the company’s risk profile. The firm set a $15 price target, implying further downside from current levels.
- Trip.com Group (TCOM) plunged roughly 16% after the company disclosed it received a notice of investigation from China’s State Administration for Market Regulation. The probe, tied to China’s Anti-Monopoly Law, reignited regulatory concerns around major Chinese internet platforms.
- Glaukos (GKOS) fell about 12% after the medical technology company released preliminary fourth-quarter sales that missed Wall Street estimates. Weakness in sales of its iDose TR implant raised questions about near-term growth momentum.
Tech Stocks Drag as Valuation Fears Resurface
Technology stocks bore the brunt of Wednesday’s selloff, with investors rotating away from high-growth names amid renewed uncertainty around global trade and regulation. Reports of possible new restrictions on AI chip flows to China reignited concerns about revenue growth for major semiconductor players. The pullback highlights how sensitive tech stocks remain to policy headlines, particularly as valuations sit near historic highs following last year’s rally.
Economic Data Keeps Fed Expectations in Check
On the macro front, investors parsed a delayed release of wholesale inflation data, which showed price pressures largely in line with expectations. Combined with a mild consumer inflation report earlier in the week, the data reinforced expectations that the Federal Reserve will keep interest rates steady at its January meeting. Meanwhile, retail sales rose more than expected in November, pointing to resilient consumer spending despite higher borrowing costs. The mixed data left markets balancing optimism about growth against caution over inflation risks.
Geopolitical Tensions Lift Commodities
Rising concerns over potential U.S. action in Iran pushed oil prices to a two-month high, adding pressure to equities. Gold and silver surged to fresh record highs as investors sought safe havens amid escalating geopolitical risks and growing scrutiny of U.S. trade policy. Precious metals also benefited from expectations that the Fed may still deliver rate cuts later in the year, supporting non-yielding assets.
Looking Ahead
Investors now turn their attention to the next wave of corporate earnings, including additional financials and major technology firms, for clues on profit resilience in a shifting economic landscape. Upcoming data on inflation and labor markets will also be closely watched for any signs that could alter the Fed’s policy path. With geopolitical risks simmering and valuations stretched, markets may remain volatile in the near term as traders weigh earnings strength against macro and political uncertainty.
