Wall Street closes lower as Nasdaq, tech, and bank stocks fall.

U.S. equity markets retreated Wednesday, primarily pressured by a significant decline in the Nasdaq and the broader technology sector. The sell-off reflected a pronounced shift in investor sentiment as capital rotated out of high-growth tech shares and into defensive sectors. The financial sector faced continued downward pressure, with bank stocks extending recent losses. This weakness follows a period of mixed quarterly earnings reports and heightening regulatory concerns regarding a proposed cap on credit-card interest rates, which threatens to impact long-term profitability. Despite the broader market decline, cyclical and small-cap stocks demonstrated resilience. Both the Russell 2000 and the S&P 500 industrials reached new record highs, highlighting a divergence in performance as investors recalibrate expectations for the domestic economy.