Nasdaq ends down as chipmakers fall and bank earnings roll in
SPY•The Nasdaq fell 0.15% and the S&P 500 slipped 0.02% as chip stocks extended recent losses and investors assessed mixed bank earnings. The Dow lost 0.33%.
1. Chip stocks extend losses
The PHLX chip index fell for a fifth straight session, dropping more than 8% over five sessions, amid concerns about Chinese competition and a comment by Broadcom CEO Hock Tan comparing some sector investment to “casino gambling.” Micron Technology and Applied Materials fell sharply, while Broadcom rose.
2. Banks post mixed results
Citigroup slipped and Goldman Sachs rose after both topped profit estimates. Wells Fargo fell after net interest income missed estimates, while JPMorgan Chase swung between gains and losses after a rare profit miss. Johnson & Johnson also declined despite topping profit estimates.
3. Indexes close lower
The S&P 500 ended at 7,805.83, down 1.41 points, while the Nasdaq Composite fell 42.37 points to 27,203.53 and the Dow dropped 173.10 points to 51,677.45. Analysts see third-quarter S&P 500 earnings rising more than 30%, largely fueled by AI-related technology companies. Bumble jumped after agreeing to go private in a $1.3 billion deal, while Domino’s Pizza fell after reducing its full-year sales outlook.
