Broad Decline in U.S. Stocks After Trump’s Comments on Credit Cards

U.S. stock indexes fell across the board on Tuesday after giving up their early gains, pressured by a pullback in the “Magnificent Seven” technology stocks—the group that has the strongest influence on market direction. This decline weighed directly on the major indexes, all of which closed lower.

The market also came under pressure from weakness in credit‑card company shares, following remarks by U.S. President Donald Trump, who said lenders could face accusations of “breaking the law” if they fail to comply with a 10% interest‑rate cap for a full year. These comments sparked broad concerns about the profitability of credit‑card issuers and the possibility of new regulatory constraints on the financial sector.

The drop in tech stocks came after a strong rally in recent weeks, prompting investors to take profits amid elevated valuations and growing caution ahead of upcoming Federal Reserve meetings. Risk appetite has also been volatile at the start of the new year, adding further pressure on the market.

Although some sectors—such as energy—performed better, their gains were not enough to offset the decline led by the major technology names. As a result, markets remained in a state of anticipation, waiting for fresh signals from the Federal Reserve on monetary policy, while closely monitoring developments in the tech sector, which continues to be the primary driver of U.S. equities.

U.S. Inflation

Amid all these pressures, U.S. equities were unable to capitalize on the positive tone reflected in the latest inflation data.

The U.S. Consumer Price Index (CPI) delivered reassuring signals about the economic outlook, showing notable price stability and bringing inflation closer to the Federal Reserve’s target.

The CPI rose 0.3% in December, matching the previous month’s reading and aligning with market expectations. On an annual basis, the index increased 2.7%, also in line with forecasts and unchanged from the reading recorded a year earlier.

The core CPI, which excludes food and energy, rose 0.2% in December—matching November’s figure but falling short of expectations for a 0.3% increase. Annually, core CPI rose 2.6%, unchanged from the previous year but slightly below expectations of 2.7%.