Wall St edges lower as chips fall; markets assess big bank earnings By Tharuniyaa Lakshmi and Purvi Agarwal Tue, October 13, 2026 at 1:18 PM EDT 3 min read ^GSPC -0.07% JNJ -6.10% MU -5.26% WDC -2.52% AVGO +0.42% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Oct 13 (Reuters) - The S&P 500 and the Nasdaq inched lower on Tuesday as chip stocks came under selling pressure while investors parsed a mixed bag of quarterly results, including those from big US banks.
Healthcare was the biggest drag on the S&P 500, with Johnson & Johnson dropping 6.8% despite topping profit estimates.
Information technology stocks were flat in choppy trading. Some chip stocks sold off — with memory chipmaker Micron Technology losing 4.6% and data storage companies Western Digital and Seagate slipping between 1% and 2%. The decline was countered by Apple hitting a record high and Microsoft rising 0.9%.
Sentiment turned after Broadcom CEO Hock Tan likened some of the investment flow into the sector to "casino gambling" on Monday. Reports of technological advances by China's CXMT, meanwhile, raised fears of rising competition.
AI technology weakness was creating unease in the market, said Peter Cardillo, chief market economist at Spartan Capital Securities.
A 2% rise in Meta propped up the communication services sector, limiting losses on the S&P 500.
At 12:23 p.m. ET, the Dow Jones Industrial Average fell 173.96 points, or 0.34%, to 51,676.77, the S&P 500 lost 9.38 points, or 0.12%, to 7,798.04 and the Nasdaq Composite lost 38.24 points, or 0.14%, to 27,207.66.
Caterpillar and Honeywell were the biggest drags on the Dow.
Investors also read through a mixed bag of earnings from big banks. Citigroup dipped 3.4% but Goldman Sachs rose about 0.5% after both topped profit estimates.
Wells Fargo fell 1.5% after its net interest income missed estimates, while JPMorgan Chase swung between gains and losses following a rare profit miss.
The flattening yield curve — where longer-term returns rise faster than shorter-term, in a sign of rising credit risks — weighed on banks, Kathleen Brooks, research director at XTB, said. "Investors tend to price this in ahead of time, which is why US banks with large retail units like JPMorgan and Citi are struggling."
Hopes of a strong earnings season had been propping up the broader market amid geopolitical tension, surging bond yields and energy-price-led inflation worries.
"Until we get into the full swing of earnings, we'll still be subject to uneven market performance," Cardillo said.
Elevated crude prices have fueled inflation concerns and pushed bond yields to multi-year highs, but recent US economic data pointing to weaker job growth and lower-than-expected inflation rise have curbed bets on imminent interest rate hikes.
This has brought the September reading of consumer and producer prices and retail numbers, slated for this week, under greater scrutiny. Comments from regional Fed presidents Thomas Barkin and Susan Collins will be in focus later in the day.
Among others, Bumble jumped 56% to a year-high after the dating-app operator agreed to go private in a $1.3 billion deal.
Domino's Pizza lost 3.8% after scaling back its full-year sales outlook.
Declining issues outnumbered advancers by a 1.22-to-1 ratio on the NYSE and by a 1.9-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and 5 new lows while the Nasdaq Composite recorded 33 new highs and 344 new lows.
(Reporting by Tharuniyaa Lakshmi and Purvi Agarwal in Bengaluru; Editing by Joyjeet Das)
