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Equity markets took a hit today as the Nasdaq spearheaded the selloff, with technology names bearing the brunt of selling pressure. Banking stocks, meanwhile, continued their downward trajectory—a pullback that's being fueled by mixed earnings reports and growing uncertainty around potential credit-card interest rate caps.
The sector weakness in financials reflects investor concerns about tighter regulatory constraints and their impact on lending margins. Tech, which has been driving much of the recent rally, saw profit-taking accelerate as investors reassessed valuations in the current macro environment.
This kind of risk-off sentiment in traditional markets often creates spillover effects across risk assets more broadly. Traders are watching to see whether this pullback signals a broader shift in investor appetite or remains a temporary correction.