The S&P 500 (^GSPC 0.53%) fell 0.53% to 6,926.60 as it again failed to hold the 7,000 mark. The Nasdaq Composite (^IXIC 1.00%) slid 1.00% to 23,471.75 on tech weakness, and the Dow Jones Industrial Average (DJINDEX: ^DJI) edged down 0.09% to 49,149.63 in a risk-off session.
Market movers
Mega-cap tech dragged the tape, with Nvidia (NVDA 1.48%) falling 1.44% to $183.14 and Microsoft (MSFT 2.42%) shedding 2.40% to $459.38. Wells Fargo (WFC 4.61%) sank on mixed earnings and regulatory worries. Exxon Mobil (XOM +2.89%) outperformed after CEO Darren Woods called Venezuela "uninvestable" last week.
What this means for investors
Investors pulled out of tech and artificial intelligence (AI) stocks today, causing the Nasdaq's biggest decline in a month. High-growth stocks have been hit hard by overvaluation fears as well as wider geopolitical shifts.
Bank stocks declined again in spite of strong earnings from Bank of America (BAC 3.78%). There's concern about talk about a potential cap on credit card rates, which could heavily impact bank revenue. Wells Fargo missed revenue estimates.
Uncertainty over Federal Reserve independence has also taken its toll. A Department of Justice investigation into renovation budget overruns has ratcheted up tensions between the White House and the Fed.
While this week's inflation data was lower than expected, the case raises questions about the pace of future rate cuts, reducing appetite for riskier investments. Gold and silver prices continue to rally on increased demand for safe-haven assets.
