Nasdaq ends down as chipmakers fall and bank earnings roll in

The Nasdaq closed lower on Tuesday (Oct 13) as chip stocks continued their recent decline and investors digested mixed quarterly results from major US banks. The PHLX Semiconductor Index slipped 0.23 percent, marking its fifth consecutive day of losses, after Broadcom CEO Hock Tan suggested some sector investments were akin to "casino gambling".

Reports of technological progress from Chinese memory chipmaker CXMT heightened fears of escalating competition. Micron Technology plummeted 3.6 percent and Applied Materials fell nearly 7 percent, while Broadcom climbed 0.7 percent. The PHLX chip index has lost over 8 percent in the last five sessions, yet it remains up over 70 percent year-to-date.

Citigroup dropped 5.6 percent and Goldman Sachs fell 0.2 percent after both banks beat profit forecasts, while Wells Fargo slipped 3.1 percent as its net interest income fell short of expectations. JPMorgan Chase ended down 0.9 percent following a rare profit miss. Apple reached an intraday record of $348.15 before closing up 0.1 percent at $341.27, valuing its stock at $4.98 trillion.

Analysts anticipate S&P 500 third-quarter earnings to surge more than 30 percent, driven primarily by AI-related tech firms, according to LSEG data. The S&P 500 Index slipped 0.02 percent to 7,805.45 points at day's end, while the tech-focused Nasdaq Composite declined 0.15 percent to 27,204.38 points, and the blue-chip Dow Jones Industrial Average dropped 0.35 percent to 51,670.10 points.

The S&P 500 has gained 14 percent in 2026, propelled by AI-related technology stocks. However, the index's median stock has risen less than 5 percent, and more than 200 S&P 500 components have declined so far this year. Expectations of robust corporate earnings from AI powerhouses have helped the S&P 500 trade at under 19 times expected earnings, its lowest level since 2023.

The S&P 500 healthcare index slipped 1.3 percent on Tuesday as Johnson & Johnson fell 5.7 percent despite exceeding profit forecasts. Bumble surged nearly 57 percent after agreeing to a private buyout for $1.3 billion. Domino's Pizza fell 4.8 percent following a revised sales outlook. Advancing stocks outpaced declining ones in the S&P 500 by a 1.1-to-1 ratio.

The S&P 500 posted 18 new highs and five new lows, while the Nasdaq recorded 47 new highs and 408 new lows. US exchange volume was light, with 14.8 billion shares traded compared to the 17.6 billion average of the previous 20 sessions.