U.S. equities finished Tuesday's session on a mixed note, with the Dow Jones Industrial Average giving back early gains as semiconductor shares extended their recent slide and major banks reported quarterly results that failed to impress investors.
The Dow closed down 173.10 points, or 0.33%, at 51,677.45, after having risen more than 460 points earlier in the day. The S&P 500 slipped 0.02% to 7,805.83, while the Nasdaq Composite fell 0.15% to 27,203.53, pressured by continued weakness in chipmakers.
Bank earnings draw scrutiny
JPMorgan Chase reported third-quarter net income and revenue that missed analysts' estimates, though the bank lifted its 2026 net interest income guidance. Its shares fluctuated during the session as investors weighed the mixed results.
Wells Fargo fell about 2% after delivering earnings per share above expectations but revenue and net interest income below forecasts. Goldman Sachs edged higher on stronger-than-expected revenue and profit, while Citigroup, which also beat profit estimates, saw its shares decline.
The early results from major lenders are drawing attention as investors assess whether companies can meet elevated earnings expectations. Analysts expect S&P 500 third-quarter earnings to increase by more than 30% from a year earlier, according to LSEG data, with artificial intelligence-related technology companies expected to contribute significantly to growth.
Chip stocks extend decline
Semiconductor stocks remained under pressure after South Korea's Kospi index dropped 5.5% on Tuesday, reaching its lowest level since July 31. Concerns over valuations and growing competition from China weighed on the market.
Chinese memory chipmaker CXMT said it planned to release a more powerful chip by the end of the year, adding to worries about competition in the memory market. Micron Technology and Applied Materials fell sharply, while Seagate Technology and Western Digital also declined. SanDisk lost more than 2%, and South Korean chipmaker SK Hynix fell nearly 4%. Broadcom, however, rose.
The PHLX Semiconductor Index fell for a fifth consecutive session and lost more than 8% over the past five trading days. Despite the recent declines, the index remained up more than 70% year to date. The weakness in semiconductor shares weighed on the Nasdaq, which has benefited from technology and AI-related stocks during the broader market rally.
S&P 500 holds near record levels
The S&P 500 has gained about 14% in 2026, supported by AI-related technology stocks. However, gains have not been evenly distributed across the index, with the median stock up less than 5% and more than 200 constituents lower for the year.
The index was trading at less than 19 times expected earnings, its lowest forward valuation since 2023, according to the provided market data. Investors have also been monitoring elevated Treasury yields, inflation concerns, and the impact of high oil prices amid the US war with Iran. Strong earnings expectations have helped offset some of these pressures.
UnitedHealth shares were marginally higher after the health insurer reported results that exceeded analyst expectations. Apple also reached an intraday record high.
Other individual stocks moved on company-specific developments. Bumble jumped after agreeing to a $1.3 billion deal to go private, while Domino's Pizza fell after reducing its full-year sales outlook. Johnson & Johnson shares also declined despite the company reporting better-than-expected profits.
With more corporate results due, investors will continue assessing whether earnings growth can support equity valuations amid pressure on semiconductor stocks and broader economic uncertainty.
This article is for informational purposes only and does not constitute financial advice.
