Traders on the floor of the New York Stock Exchange faced a challenging session as stock futures hovered near flat levels on Wednesday night. Following two consecutive days of losses for the S&P 500, futures associated with the Dow Jones Industrial Average declined by 67 points, approximately 0.1%. Similarly, futures for the S&P 500 and Nasdaq 100 each experienced a slight dip of around 0.1%.
In a significant development late Wednesday, President Trump issued a proclamation imposing a 25% tariff on specific semiconductors. Importantly, this levy will not apply to chips that are crucial for the expansion of the U.S. technology supply chain.
Throughout regular trading on Wednesday, technology stocks experienced a downturn, contributing to the pressure on the major averages. The broad-market index ended the session down 0.5%, and the Dow lost about 42 points, or nearly 0.1%. The Nasdaq Composite suffered a more substantial decline of 1%. Notable tech giants such as Microsoft, Meta, and Amazon each saw losses exceeding 2%, while Oracle and Broadcom fell by 4%. Nvidia also slipped by 1.4%. Adding to concerns, Reuters reported that Chinese customs authorities advised their agents that Nvidia’s H200 chips were prohibited from entering the country.
Financial stocks performed poorly, with Wells Fargo experiencing a notable loss of 4.6% after reporting weaker-than-expected fourth-quarter revenue. Citigroup and Bank of America also faced declines of more than 3%, contributing to the broader market’s struggles.
Despite the day’s setbacks, Ayako Yoshioka, portfolio consulting director at Wealth Enhancement Group, expressed a degree of optimism during an appearance on CNBC’s “Closing Bell.” She noted the underlying stability of the economy and the strength of corporate earnings, asserting that 2026 is likely to be driven more by earnings growth than by expansion of multiples. Yoshioka acknowledged that, while there may be short-term disappointments relative to expectations, these could represent buying opportunities given the sound economic backdrop.
Investor sentiment was further impacted by geopolitical risks, particularly concerns over potential oil supply disruptions amid escalating tensions between the U.S. and Iran, a significant OPEC member. These anxieties led to a rise in oil prices, with West Texas Intermediate crude futures closing up more than 1% before receding after Trump indicated he might refrain from military action against Iran.
In other news, Trump officials engaged with Danish and Greenlandic foreign ministers, continuing discussions around U.S. ambitions for control over Greenland. This topic remains contentious, with a Danish official indicating unresolved disagreements over the territory’s ownership.
Additionally, Trump has intensified his critiques of Federal Reserve Chair Jerome Powell, urging the central bank to lower interest rates. This has sparked concerns about the Fed’s independence, particularly following Powell’s confirmation that the Justice Department has initiated a criminal investigation into him.
Looking ahead, traders are set to monitor several market catalysts on Thursday, including earnings reports from Goldman Sachs, Morgan Stanley, and BlackRock. Economic data regarding weekly jobless claims is also anticipated, further influencing market dynamics.
