US stock markets edged lower again on Wednesday as mixed earnings from major banks and a rise in oil and gold prices kept investors cautious. The S&P 500 slipped 0.3 per cent, extending its decline a day after hitting an all-time high. The Dow Jones Industrial Average fell 84 points, or 0.2 per cent, while the Nasdaq composite was down 0.5 per cent in early trade, AP reported.Market sentiment remained fragile as crude oil prices added about 1 per cent to recent gains amid concerns that protests in Iran could disrupt global oil supplies. Gold rose nearly 1 per cent, moving closer to record levels, while Treasury yields eased as investors sought safer assets.Bank stocks weighed on the benchmarks. Wells Fargo dropped 4.5 per cent after reporting quarterly profit and revenue that missed expectations, with analysts pointing to weaker trading fees and other items. Bank of America slid 3.4 per cent despite posting stronger-than-expected profits, while Citigroup pared early gains to trade 0.3 per cent lower after its results fell short of forecasts.With equity valuations elevated, analysts said companies need to deliver solid earnings growth to justify current price levels. Consensus estimates tracked by FactSet suggest earnings per share for S&P 500 companies in the final quarter of 2025 are expected to be about 8 per cent higher than a year earlier.Energy stocks offered some support. Exxon Mobil rose 1.3 per cent, helping limit broader market losses, as US benchmark crude gained 0.8 per cent, taking its year-to-date increase to 7 per cent.In the bond market, yields edged lower following mixed economic signals. Data showed US retail spending in November exceeded expectations, a positive sign for consumer demand, though economists flagged underlying weaknesses. “Sales of big-ticket items fell from the prior year,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, said.Another report showed US wholesale prices rose modestly in November, following data earlier this week that indicated consumer inflation remained above the Federal Reserve’s 2 per cent target but broadly met expectations.The yield on the 10-year US Treasury slipped to 4.15 per cent from 4.18 per cent on Tuesday, while the two-year yield eased to 3.52 per cent.Overseas markets were mixed. Japan’s Nikkei 225 jumped 1.5 per cent to a fresh record amid expectations that Prime Minister Sanae Takaichi may call early elections. In Asia, Hong Kong’s Hang Seng rose 0.6 per cent, while Shanghai’s index fell 0.3 per cent after data showed China’s trade surplus surged 20 per cent in 2025 despite US tariffs.
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