FX.co ★ Financials Drag US Stocks Lower

US stock markets ended lower on Tuesday, primarily driven by declines in financial sector shares. The downturn coincided with the commencement of the earnings season and revived policy uncertainties stemming from President Donald Trump. The S&P 500 experienced a 0.2% decrease, the Dow Jones Industrial Average fell by nearly 400 points, and the Nasdaq Composite dropped by 0.1%. Notably, JPMorgan shares fell by 4.2%, despite reporting better-than-anticipated results. The decline was attributed to weaker investment banking fees and concerns over a proposed one-year 10% cap on credit card interest rates, which could adversely affect consumers and the economy. Visa and Mastercard both declined by over 4%, further intensifying pressure on banking and payment companies sector-wide. In the airline industry, Delta Air Lines saw a fall of more than 2% following its forecast of adjusted earnings falling short of analysts’ estimates. Earlier in the session, the markets received a brief boost as December's Consumer Price Index (CPI) data indicated inflation aligning with expectations, bolstering predictions of potential Federal Reserve interest rate cuts later in the year.