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 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 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 ( NDAQ) 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 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.