US stocks: Nasdaq ends down as chipmakers fall and bank earnings roll in

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

The PHLX chip index fell 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 and Applied Materials both fell sharply. Broadcom rose.

Citigroup dipped and Goldman Sachs rose after both banks topped profit estimates.

Wells Fargo fell after its net interest income missed estimates, while JPMorgan Chase swung between gains and losses following a rare profit miss.

Apple hit an intraday record high.

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.

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"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.

According to preliminary data, the S&P 500 lost 1.41 points, or 0.02%, to end at 7,805.83 points, while the Nasdaq Composite lost 42.37 points, or 0.15%, to 27,203.53. The Dow Jones Industrial Average fell 173.10 points, or 0.33%, to 51,677.45.

The S&P 500 has rallied about 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 on Tuesday, with Johnson & Johnson down despite topping profit estimates.

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

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