Dow Closes 170 Pts Lower As Chip Stock Sell Off Continues

US stocks ended mixed on Tuesday as investors assessed third-quarter earnings from major banks and continued selling memory chip stocks following a sharp decline in South Korea's equity market.

The S&P 500 finished nearly flat, slipping 0.02% to 7,805.83, while the Nasdaq Composite fell 0.15% to 27,203.53.

The Dow Jones Industrial Average declined 0.33%, or 173.10 points, to 51,677.45, giving back gains after rising more than 460 points earlier in the session.

Investors weighed mixed results from JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS) and Citigroup (C) as the earnings season gathered pace.

Meanwhile, concerns over Chinese competition and chip valuations pressured semiconductor shares.

Bank earnings put investors on alert

JPMorgan Chase reported third-quarter net income and revenue below analysts' expectations, although it raised its 2026 net interest income guidance. Its shares fluctuated during the session as investors assessed the results.

Wells Fargo shares fell about 2% after the bank reported mixed results. Earnings per share exceeded expectations, but revenue and net interest income came in below analysts' forecasts.

Goldman Sachs shares edged higher after the bank reported stronger-than-expected third-quarter revenue and profit. Citigroup, which also exceeded 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.

UnitedHealth (UNH) shares were marginally higher after the health insurer reported results that exceeded analyst expectations. Apple (AAPL) also reached an intraday record high.

Semiconductor stocks extend their decline

Chip 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 concerns about competition in the memory market.

Micron Technology (MU) and Applied Materials (AMAT) fell sharply, while Seagate Technology (STX) and Western Digital (WDC) also declined.

SanDisk lost more than 2%, and South Korean chipmaker SK Hynix fell nearly 4%. Broadcom (AVGO), 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 as earnings take focus

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.

Other individual stocks moved on company-specific developments.

Bumble (BMBL) jumped after agreeing to a $1.3 billion deal to go private, while Domino's Pizza (DPZ) fell after reducing its full-year sales outlook.

Johnson & Johnson (JNJ) 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.