Wall Street Falls as Tech and Bank Stocks Lead Losses

US stocks ended lower on Wednesday as investors pulled back from technology and financial shares, rotating into more defensive areas of the market.

The Dow slipped 0.3%, the S&P 500 fell 0.8%, and the Nasdaq dropped 1.4%, led by weakness in tech.

Bank stocks extended recent declines after mixed earnings. Wells Fargo sank 5.1% after missing profit expectations, while Citigroup and Bank of America fell more than 4% despite beating forecasts. The S&P 500 bank index slid 2.1% to a five week low.

Technology shares were also pressured after reports that China told domestic firms to stop using some US and Israeli cybersecurity software, weighing on names such as Broadcom, Palo Alto Networks, and Fortinet.

Economic data showed producer prices in line with expectations and stronger retail sales, reinforcing views that the Federal Reserve will keep rates steady in the near term. Markets continue to price in rate cuts later this year.

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