Nasdaq ends lower as chipmakers fall and bank earnings roll in

The Nasdaq closed lower on October 13, 2026, as chip stocks continued their recent decline and investors analyzed mixed quarterly earnings from major US banks. The Philadelphia Stock Exchange's chip index fell 0.23%, marking its fifth consecutive day of losses, after Broadcom CEO Hock Tan suggested that some investments in the sector resembled "casino gambling."

Reports of technological advancements by Chinese memory chip company CXMT further heightened concerns over growing competition. Micron Technology declined 3.6% and Applied Materials dropped almost 7%, while Broadcom managed a 0.7% gain. Citigroup fell 5.6% and Goldman Sachs slipped 0.2% after both banks exceeded profit estimates, while Wells Fargo slipped 3.1% following a shortfall in net interest income and JPMorgan Chase closed down 0.9% following a rare profit miss.

Apple briefly reached an intraday high of $348.15 before closing 0.1% higher at $341.27, bringing its market value to $4.98 trillion. Analysts anticipate S&P 500 third-quarter earnings to surge more than 30%, driven largely by AI-related technology companies, according to LSEG data. Despite concerns about the US-Iran war, rising bond yields, and high oil prices fueled by inflation, strong earnings expectations have offset these worries.

The S&P 500 closed the session at 7,805.45 points, down 0.02%, the Nasdaq fell 0.15% to 27,204.38 points, and the Dow Jones Industrial Average declined 0.35% to 51,670.10 points. The S&P 500 has gained 14% in 2026, propelled by AI-related technology stocks, but the median stock in the index has only risen less than 5%, and over 200 S&P 500 components have declined so far this year.

As investors anticipate robust corporate earnings from AI giants, the S&P 500 trades at under 19 times expected earnings, its lowest level since 2023. The Philadelphia Stock Exchange's chip index has lost over 8% over the past five sessions, yet it remains up over 70% year-to-date. The S&P 500 healthcare index fell 1.3% on October 13, with Johnson & Johnson down 5.7% despite beating profit estimates.

Bumble surged nearly 57% following its decision to go private in a $1.3 billion deal, while Domino's Pizza dropped 4.8% after revising its full-year sales outlook downward. More advancing issues than falling ones outnumbered the S&P 500 by a ratio of 1.1 to 1. The S&P 500 had 18 new highs and five new lows, while the Nasdaq recorded 47 new highs and 408 new lows.

US exchange volume was relatively light, with 14.8 billion shares traded compared to an average of 17.6 billion shares over the previous 20 sessions.