Dow Jones falls 400 points dragged lower by JPMorgan, financial stocks; Oil rallies

US benchmark indices on Wall Street gave up inflation-led gains to end lower on Tuesday as financial stocks continued to underperform on concerns over US President Donald Trump's musing of keeping credit card interest rates capped at 10% for a year.

The Dow Jones fell 400 points on Tuesday, while the S&P 500 and Nasdaq ended little changed, but below the flat line. JPMorgan was the key drag on the Dow as despite an earnings beat, the stock ended 4% lower due to its investment banking revenue missing expectations as well as its own internal guidance.

JPMorgan's results also dragged Goldman Sachs lower. The latter reports results on Thursday. Credit Card companies continued to sulk, with shares of Visa declining over 4.5%, while Mastercard's shares saw a 3.8% cut on Tuesday.

Earlier, the CPI print for December was in-line with expectations. However, the Core CPI figure of 0.2% month-on-month increase and 2.6% year-on-year rise were better-than-expectations. That did little to alter the Fed path, as the probability for a status quo in the January meet still stands at 98% and for March at 75%.

Bond market traders are divided between now pricing in a rate cut in the month of June, or later in the year, or factoring in no rate cut at all in 2026.

Oil prices surged after Donald Trump urged Iranians to continue protesting and that "help is on its way." Brent crude is now near $66 per barrel, having declined to multi-year lows just last month. Concerns in Iran have also led to investors piling into haven assets with Gold prices remaining near $4,600 an ounce, while Silver making new highs above $86 an ounce.

Later today, the US Supreme Court is scheduled to have an opinions day, which could also involve the Trump tariffs case. Bank of America, Citigroup and Wells Fargo report results today, while on the macro front, data from retail sales, the Producer Price Index and business inventories will be awaited later in the day.