Market Shakeup: Tech Drags Down U.S. Stocks as Investors Shift Gears

U.S. stocks, led by Nasdaq, fell on Wednesday as investors shifted from technology to more defensive sectors, amid concerns over Trump's proposed credit-card interest rate cap affecting the financial sector. Despite mixed bank earnings, financial shares declined. Meanwhile, oil prices rose, boosting energy stocks.

On Wednesday, the U.S. stock market witnessed a downturn, primarily driven by declines in technology stocks within the Nasdaq Composite Index. Investors have been transitioning towards more defensive stocks amid concerns regarding proposed regulatory changes in credit-card interest rates.

The financial sector experienced extended losses, exacerbated by mixed results in quarterly earnings. Notably, Wells Fargo shares fell significantly, despite some banks like Citigroup and Bank of America exceeding profit expectations.

Similarly, the Dow Jones and S&P 500 indices posted marginal losses, whereas energy stocks saw an uptick due to heightened oil prices. Investor sentiment remains cautious, with anticipated steadiness in interest rates through mid-year, coupled with potential rate cuts by year's end.

(With inputs from agencies.)