Stock Market Today, Jan. 7: Banks Slide as Stock Rally Slows

The S&P 500 (SNPINDEX:^GSPC) fell 0.34% to 6,920.93 after briefly touching fresh record territory today. The Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.16% to 23,584.28 on further AI‑driven tech strength, and the Dow Jones Industrial Average (DJINDEX: ^DJI) dropped 0.94% to 48,996.08 as bank stocks slipped.

Market movers

A sharp sell‑off in major bank stocks, including Dow components, dragged on financials today. JPMorgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC) both dropped slightly as markets responded to mixed economic news. Architectural products and services company, Apogee Enterprises (NASDAQ:APOG) sank on a revenue miss and weak outlook.

What this means for investors

Bank and energy stocks slipped today as the S&P 500 pulled back from yesterday's high. The ADP's December employment update came in slightly below expectations, and investors will be watching for further jobs data in the coming days.

Nvidia (NASDAQ:NVDA) rose slightly, even as some investors told Bloomberg that AI fatigue could set in and slow the tech-driven momentum. Meanwhile, crude oil prices fell as markets digested U.S. Energy Secretary Chris Wright's announcement that the country would control future sales of Venezuelan oil.

Social media messages from President Trump impacted defense and homebuilding stocks. Shares in Blackstone (NYSE:BX) fell after a post that said institutional investors would be banned from buying single-family homes.

JPMorgan Chase is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Blackstone, JPMorgan Chase, and Nvidia. The Motley Fool has a disclosure policy.