US equities opened with a split on Tuesday as the Dow Jones Industrial Average climbed 317 points, while the S&P 500 slipped 0.06% and the Nasdaq Composite fell 0.38%. The divergence reflected a renewed selloff in semiconductor stocks and a mixed batch of quarterly results from major banks at the start of the earnings season.
Investors are parsing early corporate reports for signs of resilience amid elevated borrowing costs, lingering inflation concerns, and geopolitical tensions. The earnings season is expected to offer a clearer picture of the health of US businesses and consumers, with analysts projecting roughly 30% year-over-year earnings growth for the S&P 500 in the third quarter, according to LSEG and FactSet estimates.
Bank earnings drive diverging stock moves
Goldman Sachs shares advanced about 1.44% after the investment bank posted higher third-quarter profit, supported by stronger equities trading revenue and steady dealmaking activity. UnitedHealth also rose 3.17% after raising its 2026 profit forecast, citing tighter medical cost management and improved margins in certain business units.
Other major banks faced pressure following their results. JPMorgan Chase gained roughly 1.3% despite missing analyst expectations on both earnings and revenue, though the bank lifted its 2026 net interest income guidance. Wells Fargo slipped 0.5% after reporting mixed results, with net interest income falling short of estimates. Citigroup edged up 0.38% after beating quarterly profit forecasts. Johnson & Johnson declined 2.2% even though its quarterly profit exceeded expectations.
The early results are setting the tone for a reporting season in which expectations remain elevated, and the diverging moves highlight the uneven impact of the current rate environment on different financial institutions.
Chip stocks extend losses amid China competition
Semiconductor and memory stocks remained under pressure following Monday's selloff, as investors weighed increased competition from Chinese memory chipmaker ChangXin Memory Technologies (CXMT). CXMT has announced plans to release a more powerful chip by the end of the year, raising concerns about the memory market's competitive landscape.
South Korea's Kospi index fell 5.46%, reaching its lowest level since July 31, amid valuation concerns and competitive pressures. Nvidia shares dropped 1%, Advanced Micro Devices fell 3.7%, and Marvell Technology declined 4.7%. Micron Technology lost 5.5%. Storage companies also weakened, with Western Digital, Seagate Technology, and SanDisk falling around 6%, while SK Hynix declined about 5%.
The weakness in chip stocks weighed particularly heavily on Nasdaq futures, which underperformed the broader market, as investors reassess the sustainability of AI-driven demand and the threat of new entrants.
Inflation data and Fed commentary in focus
Investors are also monitoring energy prices, Treasury yields, and the outlook for Federal Reserve policy. Oil prices declined on Tuesday as traders assessed supply risks following attacks on Saudi Arabia and the possibility of additional diesel supplies from Russia. Previously elevated crude prices linked to the US-Iran conflict have contributed to inflation concerns and pushed government bond yields to multi-decade highs.
However, recent US data showing weaker-than-expected job growth and a smaller-than-expected increase in inflation have reduced expectations of imminent Fed rate hikes. Investors will assess September consumer and producer price data later this week, alongside retail sales figures. Existing home sales data and comments from regional Fed presidents Thomas Barkin and Susan Collins are also due on Tuesday.
This article is for informational purposes only and does not constitute financial advice.
