Stocks Fall as Bank Earnings Roll In; Gold Jumps: Markets Wrap
(Bloomberg) — Stocks saw their first back-to-back losses of 2026 after an uneventful round of economic data and a batch of earnings from big banks, with geopolitical risks keeping a lid on the market while spurring gains in oil and gold.
The S&P 500 extended its descent from a record, with a handful of megacaps leading the charge. Wells Fargo & Co. sank after missing profit estimates while Citigroup Inc. posted an 84% surge in financial advisory fees in the fourth quarter. Bank of America Corp. fell as concern about its expense outlook offset solid results.
Treasury yields remained marginally lower, with the recent economic data seen as unable to justify any shift in expectations for monetary policy. Money markets continued to project the next Federal Reserve rate cut only in mid-2026.
US retail sales rose in November by the most since July, fueled by a rebound in auto purchases and resilient holiday shopping. Wholesale inflation picked up slightly on a jump in energy costs, even as prices for services were unchanged.
“This data likely doesn’t change anything for the Federal Reserve, which ended up cutting rates back in December even without knowing this data,” said Clark Bellin at Bellwether Wealth. “We expect the Federal Reserve to remain on hold for the next six months and then cut rates by one or two times in the second half of 2026.”
Meantime, the US Supreme Court has scheduled its second “decision day” of the year on Wednesday, providing another opportunity for it to rule on the legality of three-quarters of President Donald Trump’s trade policy. An adverse ruling could draw a negative market reaction, even as the administration has alternative legal avenues for most of the levies.
The S&P 500 fell to around 6,930. The yield on 10-year Treasuries declined two basis points to 4.16%. A dollar gauge slid 0.2%. Oil climbed and gold hit fresh highs as traders awaited the US response to the turmoil in Iran.
Corporate Highlights:
Bank of America Corp.’s equity traders posted their best fourth quarter ever as the company reaped the benefits of volatile markets and net interest income topped analysts’ estimates. Citigroup Inc. posted an 84% surge in financial advisory fees in the fourth quarter, capping a year in which the firm’s revenue from handling mergers rose by more than half to an all-time record. Wells Fargo & Co. missed analysts’ profit estimates as severance costs drove up expenses. Tesla Inc. will stop selling the assistance system it calls Full Self-Driving for a one-time fee and transition entirely to a monthly subscription model, according to Elon Musk. Airbnb Inc. has hired a former Meta Platforms Inc. executive as its new chief technology officer, as the short-term rental company is investing to include more artificial intelligence and personalization elements into its service this year. Saks Global Enterprises filed for bankruptcy to address mounting losses and a substantial debt load that has weighed down the iconic luxury retailer. Shell Plc and Exxon Mobil Corp. canceled a proposed deal to sell natural gas assets in the North Sea to upstart firm Viaro Energy. Biogen Inc.’s new at-home Alzheimer’s drug will give the company an edge over rival Eli Lilly Co.’s competing therapy, its chief executive officer said in an interview. Novo Nordisk A/S is back on the hunt for deals to boost its obesity portfolio after losing US biotech Metsera Inc. in a bidding war with Pfizer Inc. late last year. Infosys Ltd. raised its annual sales forecast, signaling that a protracted slump in corporate information technology spending is starting to ease helped by adoption of newer technologies such as artificial intelligence and cloud services. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.4% as of 9:30 a.m. New York time The Nasdaq 100 fell 0.6% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 rose 0.1% The MSCI World Index fell 0.1% Bloomberg Magnificent 7 Total Return Index fell 0.8% The Russell 2000 Index was little changed KBW Bank Index fell 0.3% Wells Fargo fell 3.5% Citigroup rose 1.3% Bank of America fell 2.9% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1655 The British pound rose 0.2% to $1.3454 The Japanese yen rose 0.5% to 158.27 per dollar Cryptocurrencies
Bitcoin rose 1.6% to $95,577.32 Ether rose 3.3% to $3,315.84 Bonds
The yield on 10-year Treasuries declined two basis points to 4.16% Germany’s 10-year yield was little changed at 2.84% Britain’s 10-year yield declined two basis points to 4.38% The yield on 2-year Treasuries declined one basis point to 3.52% The yield on 30-year Treasuries declined one basis point to 4.82% Commodities
West Texas Intermediate crude rose 0.9% to $61.71 a barrel Spot gold rose 1% to $4,632.14 an ounce ©2026 Bloomberg L.P.
