Wall Street Retreats Amid Tech Slump and Geopolitical Risk as Supreme Court Looms Over Trump Tariff Case

Tech Giants Drag Market Down

U.S. financial markets pulled back for a second straight day as investors digested corporate earnings and geopolitical developments. The S&P 500 fell 1.1%, the Dow Jones lost 333 points, and the Nasdaq dropped 1.6%, with technology stocks leading the decline. Semiconductor firms faced the heaviest losses amid trade restrictions with China.


Small Caps Hold Strong

Despite pressure on mega-cap tech, smaller stocks outperformed. The Russell 2000 extended its nine-day winning streak, the longest since 1990, reflecting investor interest in more resilient sectors.


Bank Earnings Fail to Inspire

Financial stocks were mixed. Wells Fargo slid after weaker-than-expected revenue, while Bank of America and Citigroup fell slightly despite beating earnings estimates. Investor caution remains high amid political scrutiny of the Federal Reserve.


Geopolitical Tensions Push Oil Higher

Oil prices climbed for a fifth consecutive day on fears of supply disruptions from unrest in Iran. The Trump administration also prepared for tense negotiations with Greenlandic and Danish officials, with the president insisting that U.S. control over Greenland is essential for national security.


Supreme Court in Focus

The Supreme Court will hear arguments regarding the president’s authority to impose tariffs, a case that could set a landmark precedent for presidential control over trade policy.


Investor Rotation Amid Uncertainty

Bond yields fell, the dollar softened, and cryptocurrencies saw modest gains as investors rotated from tech mega-caps to smaller, more resilient equities amid earnings, geopolitical tensions, and the pending court decision.