Tech Shares Tumble as Investors Turn to Defense Amid Financial Uncertainty

U.S. stocks experienced a downturn, led by a major decline in technology shares, while investors shifted to more defensive sectors. Financial stocks were particularly hit, with banks like Wells Fargo missing profit expectations. Concerns grew over credit-card interest rate caps proposed by President Trump. Meanwhile, oil prices fluctuated amid geopolitical tensions.

On Wednesday, U.S. stocks saw a notable decline, particularly in technology shares, as investors showed a preference for more defensive sectors. Concerns over President Trump's proposed credit-card interest rate caps impacted financial stocks, with banks like Wells Fargo falling short of profit expectations.

The tech sector faced pressure as investors opted out of expensive megacaps in favor of value names. Despite mixed earnings results, market optimism persists among financial strategists, even as Trump's policies threaten various industries.

As financial sectors slid, oil prices saw fluctuations. They initially rose due to potential Iranian supply disruptions but eased following Trump's remarks on declining violence in Iran. Overall, sectors like consumer staples rose, highlighting investor caution during economic uncertainty.

(With inputs from agencies.)