Bank Earnings Disappoint. Investors Dump The Stocks Anyway

US bank stocks led a Wall Street sell-off Wednesday as fourth-quarter earnings kicked off with disappointing results. The S&P 500 closed 0.5% lower, its worst day in 2026.

Wells Fargo fell 4.6% after reporting revenue of $21.29 billion, below the $21.65 billion estimate. Net interest income of $12.3 billion also missed estimates. Citigroup dropped 3.3% despite beating estimates, as the bank reported a 13% profit decline in the fourth quarter.

JPMorgan on Tuesday reported a 7% profit decline because of an unexpected drop in investment banking revenues and an increase in loan loss reserves.

Even banks that beat expectations got punished. Bank of America reported earnings of 98 cents per share versus 96 cents expected and revenue of $28.53 billion versus $27.94 billion expected. Profit rose 12% to $7.6 billion. Net interest income rose 9.7% to $15.92 billion, about $240 million more than analysts expected. Shares fell more than 3% anyway.

Trump's call last Friday for credit card interest rates to be capped at 10% pressured bank stocks. JPMorgan CFO Jeremy Barnum was candid: "It would obviously be bad for us."

"Investors have got used to banks kicking off earnings season with solid results," said Arun Sai at Pictet Asset Management. "This time around the uncertainty around the threatened credit card interest rate cap has soured the mood."

Here's some context: America's six largest banks added $600 billion in market value last year, spurred by Trump's deregulation push. Deregulation could potentially unlock $2.6 trillion in lending capacity across the US, according to Morgan Stanley Investment Management.

BofA CEO Brian Moynihan said "we are bullish on the US economy in 2026." The bank guided for net interest income to grow 5% to 7% this year.

Looks to me as if investors were too busy selling to listen.

Silver Hits $92. Analysts Split On Whether It Can Hit $100

Silver surged to a record $92.23 per ounce Wednesday, up 29% year-to-date. Gold hit $4,641.40. Copper reached $13,407 and tin hit $52,495 per tonne, all fresh records.

"There is no precedent that I can remember in 20 years" for all four metals to peak simultaneously, said Helen Amos at BMO.

Silver surged 141% in 2025, gold jumped 65%. Both posted their best years since 1979.

"Resource nationalism" is driving prices higher, according to Evelyn Partners' Daniel Casali. China imposed export controls on silver in December.

"Both presidents are positioning their countries to try and gain leverage," Casali said. The US captured Venezuela's oil, most of which goes to China.

Powell's criminal investigation sparked fresh safe-haven demand. Geopolitical tensions over Iran and Greenland added fuel.

Bulls see more upside. Jupiter Asset Management's Ned Naylor-Leyland said $100 silver and $5,000 gold are "absolutely" possible this year. "Silver is basically disappearing now to China and India," he said, noting a $10 premium in Shanghai.

Bears see trouble. Capital Economics expects copper to fall 20% to $10,500 by year-end and gold to drop 21% to $3,500. "FOMO-driven demand" could give way to "just-as-rapid price falls," the firm said.

Industrial demand destruction may cap silver. Chinese solar manufacturers Longi and Jinko said they would substitute silver with cheaper base metals. "At some price level, fabricators and end users simply cannot absorb higher costs," said Ole Hansen at Saxo Bank.

Technical pressure is building. Gold appears the most overbought it has ever been according to its Relative Strength Index. Index rebalancing is forcing $6.1 billion in silver sales and $5.6 billion in gold sales through January 15, JPMorgan estimates.

Gold fell 0.6% and silver dropped 4% since Tuesday's close. This is the first test of whether 2026's rally can hold.

Trump Unveils Healthcare Plan. Experts Say It Lacks Detail And Could Backfire.

US healthcare spending hit $5.3 trillion in 2024, up 7.2% from $4.9 trillion in 2023. Healthcare now accounts for 18% of GDP, up from 17.7% in 2023, outpacing economic growth.

Hospital spending rose 8.9% to $1.6 trillion. Hospital prices increased 3.4%, the highest rate since 2007. ACA enrollment jumped 30% to 21.1 million people.

Against this backdrop, Trump on Thursday unveiled "The Great Healthcare Plan," a single-page framework short on specifics. The plan calls for replacing government subsidies for insurance with direct payments to consumers.

"The plan clearly opposes extension of the expiring ACA marketplace subsidies, without which roughly 4 million people will end up uninsured," said Georgetown's Edwin Park. Average premium costs already jumped to $1,904 in 2026 from $888 in 2025 after enhanced COVID-era subsidies expired.

The White House did not provide details on payment amounts or eligibility. It also did not provide a timeline for implementation.

"I do think it's a bad idea," said Gerard Anderson at Johns Hopkins. Direct payments "really pales in comparison" to what enrollees received from enhanced ACA subsidies. A 60-year-old earning $63,000 lost $7,300 in subsidies and now pays the full $15,000 premium.

"If you give people money, they will spend it on things other than health care unless it's like a voucher," said Cornell's Nick Fabrizio.

A deeply divided Congress is unlikely to pass major healthcare legislation quickly.

Markets liked it anyway. UnitedHealthcare rose 0.8%, Humana 3.5%, Oscar Health 6.4%. Eli Lilly fell 3.7%, AbbVie 1.9%.

Industry fundamentals remain ugly. Healthcare industry EBITDA as a percentage of national health expenditures fell from 11.2% in 2019 to 8.9% in 2024. McKinsey expects it to drop further to 8.7% in 2027.

Payers and providers bore the brunt of the decline and will continue to feel financial pressure. Spending is soaring. The plan lacks detail, and we know Congress won't act fast. Millions face higher costs. Good luck.