Mixed Bank Earnings Spur Market Retreat

Wall Street experienced a downturn with bank stocks falling due to mixed earnings from major banks like Bank of America, Wells Fargo, and Citigroup. Tech and growth stocks also saw declines amid reports of Chinese restrictions. Despite these challenges, a sector rotation into energy and defensive stocks provided some market resilience.

Wall Street faced another day of declines as major indexes fell amid mixed results from leading banks. Bank of America, Wells Fargo, and Citigroup all reported earnings, leading to a retreat in banking stocks. Tech giants weren't spared either, with Chinese restrictions hitting cybersecurity firms.

Shares in Wells Fargo slid 5.6% after missing profit expectations, while Bank of America and Citigroup exceeded estimates but still saw shares drop nearly 5% and 3% respectively. The S&P 500's bank index fell 2.5% while concerns over potential credit card interest rate caps from JPMorgan executives worried investors.

Despite downward pressure, the energy sector emerged strong, buoyed by rising oil prices. Defensive sectors like consumer staples, real estate, and utilities showed gains, offering some silver lining as markets examined quarterly results and potential interest rate cuts.

(With inputs from agencies.)