US stocks dip as banking earnings roll in
Wall Street stocks were finished lower on Tuesday, as chip stocks added to recent losses and investors parsed mixed quarterly results from Citigroup and other big US banks. The PHLX chip index fell 0.2 percent, down for a fifth straight session, after Broadcom CEO Hock Tan on Monday likened some of the investment flow into the sector to "casino gambling." Micron Technology lost 3.6 percent and…
Wall Street experienced a dip on Tuesday as chip stocks continued their downward trend and investors assessed mixed quarterly results from major US banks. Investors were particularly concerned after Broadcom CEO Hock Tan likened some investment in the chip sector to gambling. Micron Technology and Applied Materials saw significant declines, with Micron losing 3.6 percent and Applied Materials dropping nearly 7 percent.
Broadcom, however, rose by 0.7 percent. Citigroup and Goldman Sachs both fell after reporting profits that exceeded estimates, while Wells Fargo saw a 3.1 percent drop due to lower-than-expected net interest income. JPMorgan Chase ended down 0.9 percent after missing a profit target. Despite the overall decline, Apple's stock hit an intraday high of $348.15 before closing at $341.27, maintaining its market value at approximately $4.98 trillion.
On average, analysts anticipate a 30 percent increase in S&P 500 earnings for the third quarter, driven largely by technology companies involved in AI. This optimism has offset fears of a US conflict with Iran, rising interest rates, and high oil prices. Many investors are relieved that markets may soon focus on earnings more than other factors, such as bond yields and oil prices.
The S&P 500 closed the session at 7,805 points, the Nasdaq at 27,204 points, and the Dow Jones Industrial Average at 51,670 points.
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