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Investing.com-- U.S. stocks fell Wednesday, as investors digested a fresh batch of earnings from major Wall Street banks as well as data showing inflation growth.
At 09:35 ET (14:35 GMT), theDow Jones Industrial Averagedropped 90 points, or 0.2%, theS&P 500index fell 26 points, or 0.4%, and theNASDAQ Compositeslipped 145 points, or 0.6%.
The main averages dropped on Tuesday, with the blue chipDow Jones Industrial Averagedropping almost 400 points, or 0.8%, theS&P 500falling 0.2% and the Nasdaq Composite shedding 0.1%.
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There are more earnings from the banking sector for investors to focus on Wednesday, with Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) all reporting.
Bank of America’s average loans grew 8% from a year earlier, and its net interest income - or the difference between what it earns from loans and pays out in deposits - surged to a record $15.9 billion.
Citigroup’s average loans climbed 7% in the fourth quarter, driven by is markets, U.S. personal banking and services businesses, while Wells Fargo also saw the pace of loan growth pick up, with loans growing 12% for its commercial businesses in the fourth quarter.
The prints will be closely studied for more cues on the U.S. economy, as well as acting as barometers of sentiment in the opening weeks of 2026, and come after banking major JPMorgan Chase (NYSE:JPM) started the quarterly results season rolling on Tuesday.
JPMorgan Chase, the largest U.S. bank, posted a decline in fourth-quarter profit, dragged down by provisions related to its acquisition of a credit card partnership with Apple from Goldman Sachs. The lender also warned of the impact President Donald Trump’s proposed cap on credit card interest rates could have on industry returns and consumers.
Analysts were also on the lookout for any commentary around the independence of the U.S. central bank, which has become a central focus since the Trump administration launched a criminal investigation into Fed Chair Jerome Powell. The Fed leader has said the move was motivated by a desire to influence how policymakers set interest rates.
JPMorgan CEO Jamie Dimon backed an independent Fed, saying anything that "chips away" at its ability to adjust policy free of political influence "is not a good idea."
Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and asset manager BlackRock (NYSE:BLK) are also set to report earnings on Thursday.
Beyond bank earnings,producer price indexinflation data for both October and November was released earlier Wednesday.
Theproducer price indexfor final demand rose 0.1% on the month in October, after rising by a revised 0.6% in September, the Labor Department’s Bureau of Labor Statistics said.
The bureau also released the November figures at the same time, and these showed monthly growth of 0.2%
That said, the widely-watched‘core’ PPIfigure, which excludes volatile food and energy prices, grew a substantial 0.7% on the month in October, and 0.2% in November on a monthly basis.
For the 12 months ended in November,pricesfor final demand less foods, energy, and trade services climbed 3.5%, the largest 12-month increase since rising 3.5% in March.
The print comes just a day afterconsumer price indexinflation data read largely in line with expectations for December, whilecore CPIcooled slightly.
Complicating the situation for the Federal Reserve was the news that U.S. retail sales grew by more than anticipated in November, rebounding from a contraction in the prior month, suggesting some strength in consumer spending heading into the final month of 2025.
Retail salesexpanded by 0.6% on a month-on-month basis, faster than expectations for an increase of 0.5%, data from the U.S. Census Bureau showed on Wednesday. In October, the figure, which is comprised mostly of goods and is not adjusted for inflation, was revised lower to show a contraction of 0.1%.
Consumer spending is one of the major engines of the American economy, typically accounting for roughly two-thirds of total output.
Oil prices rose, adding to recent gains, even as Venezuela resumed exports and U.S. crude inventories rose, while developments in Iran remained in focus.
Brent futures climbed 1.2% to $66.22 a barrel and U.S. West Texas Intermediate crude futures rose 1.1% to $61.83 a barrel.
Both contracts surged more than 2.5% on Tuesday, pushing Brent to an 11-week high and WTI to a 10-week peak, extending strong gains over four consecutive sessions.
Crude stocks in the U.S., the world’s biggest oil consumer, rose by 5.23 million barrels in the week ended January 9, the American Petroleum Institute reported on Tuesday.
Official stockpile data from the U.S. Energy Information Administration will be released later on Wednesday.
Additionally, Organization of the Petroleum Exporting Countries member Venezuela has resumed exporting crude as part of a deal between Caracas and Washington in the wake of the U.S. capture of Venezuelan President Nicolas Maduro.
The mounting protests in Iran, however, have increased fears of supply disruptions from the fourth-largest OPEC producer.
Elsewhere, gold prices scaled fresh record highs as the U.S. inflation data cemented expectations for Fed rate cuts later this year and geopolitical tensions in Iran underpinned safe-haven demand.
Spot gold rose more than 1% to a record high of $4,640.13 an ounce, surpassing the previous session’s all-time high of $4,634.33/oz. U.S. Gold Futures for March advanced 1% to $4,643.10/oz.
Ambar Warrick contributed to this article
