Nasdaq Dow Jones S&P 500: Nasdaq crashes, Dow Jones, S&P 500 fall even after more stocks jump on Wall Street. Here’s why
Wells Fargo helped lead the market lower after falling 4.6 percent. The San Francisco-based bank reported weaker-than-expected profits and revenue in the latest quarter, with analysts pointing to lower transaction fees and various other items.
Bank of America fell 3.8 percent despite reporting stronger profit than analysts expected, with some concerns about the size of upcoming expenses. Citigroup, which is in the midst of a transformation under Chairman and CEO Jane Fraser, fell 3.3 percent after its own earnings report.
Companies across industries are under pressure to report strong growth in profits to justify how much their stock prices have risen recently. Analysts are looking for companies in the S&P 500 to report earnings per share for the final three months of 2025 that are about 8 percent higher than the previous year, according to FactSet.
Biogen lost 5 percent after the biotech company said it expects to take a hit to profits in the fourth quarter of 2025 due to research and development expenses and other costs it generates.
The heaviest weights in the market were technology stocks, which have given back some of their huge gains in recent years fueled by the craze for artificial intelligence technology. Such stellar performances have led some critics to say that stock prices have become too expensive.
Nvidia fell 1.4 percent and Broadcom fell 4.2 percent. Still, more stocks rose than fell on Wall Street, and the strongest forces protecting the S&P 500 from bigger losses were Exxon Mobil and other oil companies. While Exxon Mobil increased by 2.9 percent, Chevron gained 2.1 percent in value, the barrel price of benchmark US oil increased by 1.4 percent and settled at $62.02.
Shares of smaller companies also outperformed the rest of the market; The Russell 2000 index increased 0.7 percent.
