Updated from 2:26 p.m. EDT

The financial sector was mostly pulled down along with the major indices Wednesday, as inflation worries were stoked by rising gas prices and a further decline in U.S. reserves.

Citigroup

(C) - Get Report

confirmed today it will

slash some 17,000 jobs

. The cuts are part of a larger restructuring effort that ultimately is projected to save around $2.1 billion in 2007.

Yesterday, the banking giant's stock lifted on reports the job cuts would happen soon, but

growing skepticism

regarding the plan helped erase those gains today. Shares lost 60 cents, or 1.2%, to $51.80.

Citigroup was in good company.

Merrill Lynch

( MER) shed 78 cents to $85.89, Atlanta's

SunTrust Banks

(STI) - Get Report

sank 94 cents, or 1.2%, to $78.91 and

Apollo Investment

(AINV) - Get Report

closed down 36 cents, or 1.6%, to $21.78.

Meanwhile, shares of

Evercore Partners

(EVR) - Get Report

fell 3.4% to $30.14 after the

Financial Times

reported that the boutique investment bank, which went public only a few months ago, is planning on a secondary offering. Ohio-based

Peoples Bancorp

(PEBO) - Get Report

lost 2.6% to $25.66 on the resignation of chief financial officer Donald Landers. Executive VP of operations Carol Schneeberger will replace him in the interim.

On the sparser winning side,

American Home Mortgage Investment

( AHM) and online broker

TD Ameritrade

(AMTD) - Get Report

garnered upgrades from AG Edwards and Friedman Billings, respectively. AHM climbed $2.10, or 10.7%, to $21.65; Ameritrade was up 3.8% at $16.22.

Nasdaq Stock Market

(^IXIC)

added 6 cents earlier in the day but closed down 23 cents to $29.40 after

The Wall Street Journal

reported it is

in talks to buy

the Philadelphia Stock Exchange. Commodities exchange Nymex

( NMX) closed a deal, first announced in January, to buy a 19% stake in energy derivatives broker

Optionable

. Its shares recently rose 3.1% to $130.60.

More broadly, the KBW Bank Index, after sliding 0.8% earlier in the day, was up 0.8% to 114.57. The

NYSE Financial Sector Index

gave up 0.6% to 9488.97.