Wall Street stocks pulled back from record levels on Tuesday as investors digested subdued US inflation data, mixed bank earnings and a sharp rise in oil prices driven by geopolitical tensions, reports AFP.
The US consumer price index rose 2.7 percent last month, unchanged from November and in line with market expectations. While the reading kept alive hopes that the Federal Reserve could cut interest rates in 2026, equities drifted lower as the session progressed.
All three major US indices closed in negative territory, led by the Dow Jones Industrial Average, which was weighed down by a drop of more than four percent in JPMorgan Chase shares. Both the Dow and the S&P 500 had ended Monday at record highs.
JPMorgan chief executive Jamie Dimon described the US economy as “resilient,” but the bank’s investment banking results lagged expectations, and some analysts questioned its heavy capital spending plans.
Shares of other banks and credit card companies also came under pressure after President Donald Trump last week called for a cap on credit card interest rates at 10 percent, one of several recent policy statements that have caught markets off guard.
“Trump said a lot of stuff and the market is quite lost about where to look,” said Pat Donlon of Fiduciary Trust Company.
“It’s like around Liberation Day,” Donlon added, referring to Trump’s April 2025 announcement of sweeping tariffs that triggered sharp market volatility. “We get these wild swings and are back living on Truth Social posts.”
Oil prices surged around three percent after Trump announced steep tariffs on any country trading with Iran, raising concerns that the move could restrict global crude supplies.
“Supply concerns remained front and center after President Trump announced new tariffs on US imports from any countries trading with Iran, raising fears of further disruptions from one of OPEC’s largest producers,” said David Morrison, senior market analyst at Trade Nation.
“Iran’s domestic unrest, alongside escalating rhetoric around potential military action, added to the geopolitical premium,” he added.
European stock markets ended the session little changed.
In Asia, Tokyo equities closed at a record high while the yen weakened on speculation that Prime Minister Sanae Takaichi could call a snap election to capitalise on strong poll numbers. Appointed Japan’s first woman prime minister in October, Takaichi’s cabinet enjoys an approval rating of around 70 percent.
Seoul stocks climbed 1.5 percent after South Korean chipmaker SK hynix said it would invest 19 trillion won ($12.9 billion) in an advanced chip packaging plant, as it rides surging demand linked to the global artificial intelligence boom.
Brent North Sea crude rose 2.5 percent to $65.47 per barrel, while West Texas Intermediate gained 2.8 percent to $61.15.
In currency trading, the dollar strengthened against the yen but slipped against the euro and the pound.
Bd-pratidin English/ Jisan
