Wall Street had its biggest pullback of the year as a January market rally sputtered.

Technology stocks led the way lower, including a 1.9% drop in Microsoft after the tech titan joined others in its industry in announcing layoffs.

Weak readings on retail sales and industrial production also helped keep investors in a selling mood.

The S&P 500 fell 1.6% Wednesday. The Nasdaq fell 1.2% and the Dow lost 1.8%. Treasury yields fell broadly.

Japanese stocks ended higher after the Bank of Japan kept its loose monetary policy unchanged, dispelling speculation that it would raise rates to fight inflation.