US benchmark indices on Wall Street gave up earlier inflation-led gains to close lower on Tuesday, as financial stocks continued their underperformance amid concerns over Trump's proposal to cap credit card interest rates at 10% for a year. The broad-based selloff in financial services overshadowed mixed economic data and drove major indices into negative territory.

Market Performance Overview

The major US indices showed divergent performance, with the Dow Jones bearing the brunt of financial sector weakness:

Financial Sector Under Pressure

JPMorgan emerged as the primary drag on the Dow Jones, despite delivering an earnings beat. The banking giant's stock declined 4% as its investment banking revenue fell short of both market expectations and the company's own internal guidance. This disappointing performance in a key revenue segment overshadowed the bank's overall positive earnings results.

The weakness in JPMorgan had a ripple effect across the financial sector. Goldman Sachs also declined in sympathy, with investors showing caution ahead of the investment bank's earnings report scheduled for Thursday. Credit card companies faced particular pressure from Trump's interest rate cap proposal:

Inflation Data Provides Mixed Signals

The December Consumer Price Index (CPI) print came in line with expectations, providing some stability to market sentiment. However, the Core CPI figures offered a more encouraging picture, with a 0.2% month-on-month increase and 2.6% year-on-year rise both beating expectations. Despite this positive inflation data, Federal Reserve policy expectations remained largely unchanged.

Bond market traders continue to show division regarding future rate cuts, with probabilities for the January Federal Reserve meeting maintaining a 98% chance of status quo, while March odds stand at 75%. Market participants are now split between pricing in rate cuts for June, later in the year, or no cuts at all in 2026.

Oil Surge on Geopolitical Tensions

Commodity markets saw significant movement as oil prices surged following Trump's comments urging Iranians to continue protesting, stating that "help is on its way." Brent crude approached $66 per barrel, marking a substantial recovery from multi-year lows reached just last month.

The Iranian concerns also drove investors toward traditional haven assets:

• Gold: Remained near $4,600 per ounce
• Silver: Made new highs above $86 per ounce

Upcoming Market Events

Several key events are scheduled that could impact market direction. The US Supreme Court has an opinions day scheduled, which could potentially involve the Trump tariffs case. On the earnings front, Bank of America, Citigroup, and Wells Fargo are set to report results. Additionally, important economic data releases are expected, including retail sales figures, the Producer Price Index, and business inventories data.

The Dow Jones Industrial Average posted a decline in its latest trading session, with the benchmark index falling 0.81% to close unofficially at 49,189.36 points. This downward movement marks a notable retreat for the widely-followed market indicator.

Market Performance Overview

The unofficial closing data shows the index's performance for the trading session, with the 0.81% decline representing a measurable pullback from previous levels. The Dow Jones Industrial Average serves as a key barometer for market sentiment and overall equity performance.

Index Movement Analysis

The 0.81% decline reflects the day's trading activity and investor sentiment across the constituent companies that make up the Dow Jones Industrial Average. This benchmark index tracks 30 large-cap stocks and provides insight into broader market trends and economic conditions.

The unofficial closing figure of 49,189.36 points represents the index's position at the end of the trading session, subject to final settlement and any after-hours adjustments that may occur.