Nasdaq ends down as chipmakers fall and bank earnings roll in

By Noel Randewich

Oct 13 (Reuters) - The Nasdaq ‌ended 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 0.23%, 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." Additionally, reports of technological advances by Chinese memory chip company CXMT underscored concerns about rising competition.

Micron Technology lost 3.6% and Applied Materials ‌dropped almost 7%. Broadcom rose 0.7%.

Citigroup ‌dipped 5.6% and Goldman Sachs lost 0.2% after both banks topped profit estimates.

Wells Fargo fell 3.1% after its net interest income missed estimates, while JPMorgan Chase ended down 0.9% following a rare profit miss.

Apple hit ​an intraday record high of $348.15 before closing up 0.1% at $341.27, putting its stock market value at $4.98 trillion.

Analysts on average see S&P 500 third-quarter earnings surging over 30%, fueled largely by AI-related technology companies, according to LSEG ⁠data.

Expectations of a strong earnings season have offset worries about the US war with Iran, surging bond yields and inflation related to high oil prices.

"A ​lot of investors are feeling a sense of relief that markets might start looking at earnings and less at the bond market, less at higher-for-longer oil prices and ​less at high interest rates," said Jake Dollarhide, CEO of Longbow ‌Asset Management in Tulsa, Oklahoma.

The S&P 500 declined 0.02% to end the session at 7,805.45 points.

The Nasdaq declined 0.15% to 27,204.38 points, while the Dow Jones Industrial Average declined ⁠0.35% to 51,670.10 points.

The S&P 500 has rallied 14% in 2026, lifted by AI-related technology stocks. However, the median stock in the index is up less than 5% and over 200 S&P 500 components are down for the year.

Reflecting expectations of strong ⁠corporate earnings from AI heavyweights, the S&P 500 is trading at under 19 times expected earnings, its lowest since 2023.

The PHLX ​chip index has lost more than 8% in the past five sessions and it remains up over 70% year-to-date.

The S&P 500 healthcare index fell 1.3% on Tuesday, with Johnson & Johnson down 5.7% despite topping profit estimates.

Bumble jumped almost 57% after the dating-app operator ‌agreed to go private in a $1.3 billion deal.

Domino's Pizza declined 4.8% after scaling back its full-year sales outlook.

Advancing issues outnumbered falling ones within the S&P 500 by a ‌1.1-to-one ratio.

The S&P 500 posted 18 new highs and five new lows; the Nasdaq recorded 47 new highs and 408 new ⁠lows.

Volume on US exchanges was relatively light, ‌with 14.8 billion shares traded, compared ​with an average of 17.6 billion shares over the previous 20 sessions.

(Reporting by Noel Randewich in San Francisco and Tharuniyaa Lakshmi and Purvi Agarwal in Bengaluru; Editing by Joyjeet Das and ‌Matthew Lewis)

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