US stocks open in the red: S&P down 0.5%, Nasdaq slips around 1%

• Wells Fargo and Bank of America shares dropped over 3% each after reporting earnings that failed to meet investor expectations, weighing heavily on the financial sector
• Producer price index rose 3.0% year-over-year in November (vs 2.8% prior), while retail sales surged 0.6% to $735.9 billion, exceeding forecasts and showing consumer resilience
• Political pressure on Fed Chair Jerome Powell, including a Justice Department criminal investigation, continues to raise concerns about central bank independence as rate-cut expectations persist

Market Summary: US Stocks Decline for Second Session

Key Market Movements

US equities opened lower on Wednesday, January 14, 2026, marking the second consecutive session of declines. The S&P 500 fell 0.5%, the Dow Jones dropped 51 points (0.1%), and the tech-heavy Nasdaq Composite underperformed with a 0.96% decline. This pullback follows recent record highs, suggesting investors are becoming more selective amid stretched valuations.

Sector Performance

Financial stocks led the decline, with bank earnings disappointing investors. Wells Fargo tumbled over 5%, while Bank of America slid more than 3%. The financial sector's weakness echoed Tuesday's session, when the Dow fell nearly 400 points with financials as the worst-performing group.

Economic Data

Mixed economic releases showed resilience alongside inflationary pressures:

• Producer Price Index (PPI): Rose 0.2% month-over-month in November 2025, accelerating from October's 0.1%. Year-over-year PPI reached 3.0%, up from 2.8% and exceeding the 2.7% forecast.
• Retail Sales: Rebounded strongly with a 0.6% increase to $735.9 billion in November, surpassing the 0.4% expectation and reversing October's revised 0.1% decline.

Both data releases were delayed due to backlogs from the prior year's 43-day government shutdown.

Political Concerns

Federal Reserve independence concerns persisted as President Trump continued public criticism of Fed Chair Jerome Powell, with an ongoing Justice Department criminal investigation adding uncertainty. This compounds market anxiety as the Fed is expected to pause rate cuts after multiple easing measures in late 2025.

Market Outlook

Volatility is expected to continue as earnings season unfolds, with investors assessing whether corporate profits justify current valuations amid persistent inflation and political uncertainties.