Traders work on the floor at the New York Stock Exchange in New York City, United States, on January 7, 2026.
Brendan McDiarmid | reuters
S&P 500 And Dow Jones Industrial Average The stock pulled back from record levels on Wednesday as areas of the market that were hot at the beginning of the year lost momentum.
The broader market index fell 0.34% to 6,920.93. The 30-stock Dow fell 466 points, or 0.94%, to 48,996.08. Both indices hit new all-time highs at the start of the session. nasdaq composite It closed at 23,584.27 with a gain of 0.16%.
Financials and energy – two sectors that had a strong start to 2026 – saw losses during the trading day, both falling more than 1%. Bank stocks that ended the session lower include JP Morgan, Bank of America And Wells FargoDuring this time, exxon mobil, beam And ConocoPhillips There were major laggards in the energy sector.
Beyond the energy crisis, crude oil prices fell after President Donald Trump said interim officials in Venezuela would hand over 50 million barrels of oil to the US, raising concerns over stretched oil supplies.
“In our opinion, the lack of significant movement in the price of a barrel of crude is a vote of confidence that we are still far from being tight from a supply-demand standpoint,” said Keith Buchanan, senior portfolio manager at Globalt Investments. “There is significant risk of oversupply.”
Although oil prices extended their losses from Tuesday, stocks rose the previous trading day as investors shrugged off concerns about the US attack on Venezuela over the weekend.
“What happened in South America doesn’t change the outlook for growth in the U.S. from an equity market perspective,” Buchanan said.
He added, “I think there’s some satisfaction in appreciating, in our opinion, the overall geopolitical risks that are increasing, but we don’t feel like what’s happening in Venezuela has moved the needle up or down in that regard.” “We feel like we’re still in a tinderbox.”
Trump contributed to the market’s losses on Wednesday. The President said he “will not allow” defense companies to issue dividends or stock buybacks until the companies address his complaints about the industry. those comments Defense stock sent low Same day.
Additionally, Trump said the US was going to ban large institutional investors from buying more single-family homes, a move which impacted private equity stocks, such as black Stone And Apollo Global Management,
On the other hand, shares of oil refiners valero energy And Marathon Petroleum They were among the day’s winners with gains of over 3% and 1% respectively Sources told CNBC Oil sales from Venezuela will continue indefinitely and sanctions will be eased.