By US stocks opened lower on Tuesday as investors assessed quarterly earnings from major banks at the start of the reporting season, while renewed weakness in semiconductor stocks weighed on Nasdaq futures.
The Dow Jones Industrial Average rose 317 points. The S&P 500 fell 0.06%, while the Nasdaq Composite declined 0.38%.
Investors are looking for signs of corporate resilience amid elevated borrowing costs, inflation concerns and geopolitical tensions.
The earnings season is expected to provide further insight into the health of US businesses and consumers.
Bank earnings drive diverging stock moves
Goldman Sachs shares gained around 1.44% after the investment bank reported higher third-quarter profit, supported by stronger equities trading revenue and steady dealmaking activity.
UnitedHealth shares also advanced, rising 3.17%, after the health insurer raised its 2026 profit forecast.
The company has been tightening medical cost management and improving margins in some business units.
Other major banks faced pressure following their quarterly results.
JPMorgan Chase shares gained around 1.3%, despite its third-quarter earnings and revenue missing analyst expectations. The bank nevertheless raised its net interest income guidance for 2026.
Wells Fargo shares declined 0.5% after reporting mixed results, with its net interest income falling short of expectations.
Citigroup shares gained 0.38% after beating quarterly profit estimates.
Johnson & Johnson also declined 2.2%, even though its quarterly profit exceeded analysts’ expectations.
The early results are setting the tone for a reporting season in which expectations remain elevated.
Analysts expect S&P 500 earnings to grow by approximately 30% year over year in the July-September quarter, according to estimates compiled by LSEG and FactSet.
Chip stocks extend losses amid China competition
Semiconductor and memory stocks remained under pressure following Monday’s selloff, with investors assessing 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 competition in the memory market.
South Korea’s Kospi index fell 5.46%, reaching its lowest level since July 31, amid valuation concerns and competitive pressures.
Nvidia shares fell 1%, while Advanced Micro Devices declined 3.7% and Marvell Technology dropped 4.7%. Micron Technology lost 5.5%.
Storage companies also weakened, with Western Digital, Seagate Technology and SanDisk falling around 6%. SK Hynix also declined around 5%.
The weakness in chip stocks weighed particularly heavily on Nasdaq futures, which underperformed the broader market.
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.
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