U.S. Stocks Modestly Lower as Traders Digest Bank Earnings; Memory Chips Slide

U.S. stocks were modestly lower on Tuesday, with traders digesting earnings reports from major banks along with a slide in tech and the memory chip makers. 

The S&P 500 (SPX) was down a fractional 0.02%, while the Nasdaq-100 (NDX) fell 0.31%. The Dow Jones Industrial Average ($DJI) was down 0.35%, while the small-cap Russell 2000 (RUT) fell 0.4%. 

Big banks kicked off earnings, delivering a mixed performance. 

A few things to watch from Tuesday’s market action: 

Bank Stocks Sink on Earnings Reports 

JPMorgan Chase (JPM) reported third-quarter earnings and revenue that missed expectations, but the bank raised its net interest income guidance for 2026, and JPM shares fell 0.86% on the day. Wells Fargo (WFC) fell 3.1% after beating on earnings but missing revenue expectations, while Citigroup (C) fell 5.6% with a quarter-on-quarter drop in profits, despite beating Wall Street's third-quarter expectations. Goldman Sachs (GS) shares fell 0.23%. Goldman revenue for the third quarter surpassed expectations; the CEO said the IPO market and economy remain in good shape. See Bank Earnings: AI Opportunity, Rate Risks & Resilient Credit and Why Strong Earnings Could Spark a Financials Comeback | The Watch List

Chip and Memory Stocks Under Pressure 

Memory stocks fell again on Tuesday after South Korea's Kospi benchmark dropped 5.5% on valuation concerns along with growing competition out of China. This week, China's CXMT said it plans to release a new, more powerful chip by year-end. Micron (MU) shares fell 3.6%, and SK Hynix (SKHY) was down 3.2%. 

On Monday, Broadcom (AVGO) CEO Hock Tan likened speculative artificial intelligence investing to casino mentality, according to Reuters. Broadcom shares rose 0.7% Tuesday. See CXMT Challenges MU, SNDK, Other AI Memory Stocks; Bank Stocks Retreat After Earnings

Apple Stock Hits New All-time High 

Apple (AAPL) shares rose fractionally Tuesday, pushing its market cap past $5 trillion after CEO John Ternus unveiled HomeView, a new 7-inch smart home display powered by Siri AI. The new Home Collection includes indoor and outdoor cameras, thermostats, temperature sensors, a video doorbell and door lock, a 4K TV, and an iPad-like device for house management. 

For more on the economic and earnings calendars for the week, see Week Ahead: Banks Kick Off Earnings, Economic Data in Focus  

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